Rental Related Expenses on T776 or T2125?
Where To Report Rental Related Expenses
I have a rental property in the US and Canada. I am not incorporated.
I drive around to look at possible purchases, where do I expense those trips?
In my T776 or in a T2125?
All of the income from the properties is in the T776 so the T2125 would be shown as a loss.
PS Great site. I learned that I couldn't expense my home office without prorating hours :(
Erik, great question .. and it is a gray area.
As you have figured out, there is an important distinction between rental income and business income. See what taxtips.ca has to say on this matter:
It's hard to find definitive guidance on this issue. There was a bit of a discussion on this in these forums:
They are U.S. sites but I believe these arguments could apply in Canada as well.
Sorry I can't be more help. Maybe some of my other site visitors with rental property experience will know the answer to your question.
Best bet is to visit your accountant for advice.