Negative cash flow and now I need help with the taxes...

[jlprato]

Hello

I moved to a new house in late 2011 and since then I have my old home (a condo) rented. but the rent don`t pay not even the mortgage so I had to be paying the difference during 2012. Now is Taxes time. As this is my first time as landlord, can somebody help me or recommend a good accountant to guide me about what is deductible, what is not, tips, etc.?

Thanks

 

[Thomas Beyer]

Deductible is mortgage interest, condo fees, property taxes, utilities, insurance, repairs and property manger. Fill out form T776 available on the CRA website. You can do it yourself most likely.

 

[moparcanuck]

One thing to remember that is sometimes forgotten is that you do not deduct your mortage PAYMENT, you deduct only your mortgage INTEREST. In each payment (which results in negative cash flow) is a portion to pay back the principal portion of your mortgage.

 

[bradyloewen]

You will also want to have documented the value of the condo at the time it became a rental. You do not pay capital gains on any appreciation during occupancy as a primary owner, but will now pay capital gains on appreciation as an investment property (at time of disposal of course).