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What you need to know about deducting Motor Vehicle Expenses for your Rental Properties:




Motor Vehicle Expenses


The following guidelines are provided by Canada Revenue Agency:


If you own one rental property, you can deduct reasonable motor vehicle expenses if ALL of the following conditions are met:


  • you receive income from only one rental property that is in the general area where you live;

  • you personally do part, or all, of the necessary repairs and maintenance on the property;

  • you have motor vehicle expenses to transport tools and materials to the rental property.


Motor vehicle expenses incurred to collect rents are not deductible, but are considered personal expenses.


If you own more than one rental property, then the above motor vehicle expenses are deductible as well as motor vehicle expenses incurred to do any of the following:


  • collect rents;

  • supervise repairs; and

  • generally manage the properties.

When you own more than one rental property, the above expenses are deductible even if your rental properties are located outside the general area where you live.

However, the rental properties must be located in at least 2 different sites away from your principal residence.

For all motor vehicle expenses, you must keep receipts, and you must keep a log of your total mileage driven, and the mileage driven re your rental properties.

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