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Discussion Starter #1
Hello everybody,

I'm a bit in over my head, please be kind ;)

I purchased a property in Aug 2018, had a horrible experience with a tenant. Tenant was evicted in June 2019. I had a lot of repair work to do, and because I lost so much money, I did a lot of the work myself. So for July/August 2019 I was just working on the property, no rental income.

My daughter decided to move into it in Sep 2019.

It is my understanding that the property is considered to become personal use, as of the end of June.

Can I account for repair work (from the tenant that was evicted), after that date?

It is my understanding that I claim this as a capital gain, I know that I can add the legal fees/tax transfer to the "actual cost", is there anything else?

In January 2020, my daughter realizes she wasn't ready for living on her own, so I decided to sell the property.

I have a closing date this month (very lucky, considering the pandemic), but I have done a lot of improvements to the property from July to December 2019 (separate from the tenant repairs, and after the tenant moved out), do I account for that in my 2020 tax return, when I sell it under personal property?

I have also never claimed CCA, on anything.

So basically, I understand that I will be "selling" the property in June 2019, and then really selling in May 2020.

I also had to repair a ($$$) crack in the foundation, but after it was considered personal property, is that just a loss?

I appreciate any advice that you can provide. I just want to claim what I have to, pay only what I have to, and avoid an audit ;)

Thank you.
 

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The only way to deduct the work is by declaring the property a rental for all of 2019. If you declare the property was a rental only from Jan-June, then any work done after that date would not be eligible.

Its ok to declare it a rental all of 2019 even if you had no income from July to Dec. You want to take advantage of the expenses you wish to deduct.

I wouldn't deduct under CCA unless the work you did was a major improvement to the rental unit.
 
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