Deductible Expenses ?

[ekisielewski]

I would like to know if everyone who is not incorporated has been able to deduct expenses such as Rein Membership fees, travel expenses, books and seminars?
Thank you

Elisabet Kisielewski
Oakville - Ontario

 

[Anonymous]

Yes, we have been able to deduct all of that as legitimate business expenses. There was a presentation done many months ago by Navaz about how to manage this effectively and what type of documentation you need.

With all tax advise, I always ask my accountant and tax advisers, they are the best to help out with this type of feed back.

 

[ekisielewski]

QUOTE (MarkGarrett @ Sep 6 2007, 03:39 AM) Yes, we have been able to deduct all of that as legitimate business expenses. There was a presentation done many months ago by Navaz about how to manage this effectively and what type of documentation you need.

With all tax advise, I always ask my accountant and tax advisers, they are the best to help out with this type of feed back.

Tha`ts the funny part. It is my accountant who says it would be hard to justify those expenses.
Elisabet

 

[Anonymous]

QUOTE (ekisielewski @ Sep 6 2007, 08:58 AM) That`s the funny part. It is my accountant who says it would be hard to justify those expenses.
Elisabet


I would contact Navaz`s office and see if they have a one pager on what is and is not deductible for your accountant.... alternatively, George Dube is a REIN member and an accounant... you may want to contact him. I have not used him before but I know many members who are happy with his work.

 

[2HoundsHomeStaging]

QUOTE (ekisielewski @ Sep 6 2007, 07:22 PM) I would like to know if everyone who is not incorporated has been able to deduct expenses such as Rein Membership fees, travel expenses, books and seminars?
Thank you

Elisabet Kisielewski
Oakville - Ontario

Hi Elisabet, I don`t have an accountant but I do have a book-keeper and she says these things are deductable.

 

[pvilay]

I also agree that you can deduct those expenses. I was once told that you cannot deduct REIN membership fees but that is untrue. My new accountant told me that if the membership helps out your business it can be deducted, but if the membership is more out of learning a new hobby, it cannot be deducted.

 

[ekisielewski]

QUOTE (pvilay @ Sep 14 2007, 09:21 AM) I also agree that you can deduct those expenses. I was once told that you cannot deduct REIN membership fees but that is untrue. My new accountant told me that if the membership helps out your business it can be deducted, but if the membership is more out of learning a new hobby, it cannot be deducted.


Hi Paul: Thanks for your response. The key word here is business. There is no doubt these expenses are deductible if you have a business for your real estate projects. But, I am not sure if the same applies if real estate is an investment.
Elisabet K.

 

[pvilay]

ekisielewski, I"m thinking that once you accept a rent cheque, or sell a house for profit your in biz. But i`d speak to an accountant. Best to get the answer from the source!

 

[George]

Good afternoon Elisabet,

In my mind the membership fees, regardless of whether or not your are incorporated, are deductible business expenses. Your accountant in my opinion is correct to bring up the investment vs. business question. It is unclear in my opinion as to the deductibility of a variety of items related to investments. Owning one property personally would unlikley qualify you for being a business.

That being said, we`ve never seen a problem in deducting these and similar fees provided that they are "reasonable" in amount compared to the investments. Be a little more careful on the travel though as the Canada Revenue Agency isn`t as thrilled in seeing much in travel expenses where you personally own less than 3 properties.

Warm regards...

George

 

[MiguelMartinez]

Hola Elisabet, here is a link that may help you
http://www.cra-arc.gc.ca/E/pub/tg/t4036/t4036-06e.pdf
Gordon Pape wrote a book called money secrets, where he talks about deductions and such, he made an interesting observation that many times investors will not claim an item they`re entitled to claim because they`re afraid of an audit, he thinks it`s just silly. I agree with him. I had a recent audit on my medical bills only and for a while there was sweating a little, but CRA sent all my bills back with thanks, I realized that all you need is a good record system and the onus of proof. I hope the link helps you.
Siempre un placer!
Saludos,

 

[navaz]

It is interesting to watch this topic of conversation. In my mind they are deductible because it is reasoanable and necessary expense to earn income. Having said that - CRA typically had the upper hand becasue they have hindsight of seeing if you have purchased rental properties or not. If you have not purchased properties after the seminar - they would probably win the case. If you have purchased 3 or more properties - they would have to look at cash flow issues -reasonable expection of profit rules.

During an audit -if this expense is disallowed - I would appreal it and at appeals stage - I would let the office make a decision. After this point - you would spend more money on the appeal than you can save. And the final answer is - it depends.....but deduct it and worry about it when and if you get audited

Navaz

 

[richardkp]

I`m lucky and use George

But before that I used to do my own return and deducted (and still do) REIN and other membership expenses that are incurred for during the course of running my RE Investment business.