Rental property owners can typically deduct property taxes, insurance, interest, condo fees, repairs, utilities and other related costs. A rental property can even run at a loss allowing the taxpayer to claim deductions against their other sources of income.
Rental properties: Current vs capital expenses
There is a distinction between repairs and renovations for a rental property, Shawn. Repairs are referred to as current expenses, meaning they are deductible in the year incurred. Renovations are capital expenses that cannot be deducted immediately but can reduce your capital gain upon sale.
According to the Canada Revenue Agency:
A current expense is one that generally recurs after a short period. For example, the cost of painting the exterior of a wooden property is a current expense.
A capital expense generally gives a lasting benefit or advantage. For example, the cost of putting vinyl siding on the exterior walls of a wooden property
