Q:
If a property has only been rented out for 9 months in the first year, would the direct expenses incurred be calculated proportionately?
A:
Yes, if the property is being rented out for the first time, then the direct expenses incurred have to be calculated proportionately to be deducted against the rental income.
Q:
If a property rented out is vacant for 4 months, would the loan interest, management fees and other rental expenses incurred during the vacant period be tax deductible?
A:
Yes, if the property has been rented out before and the vacant period is not more than two years, the rental expenses incurred during the vacant period are deductible against the rental income.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru
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