Fixing basement for rent - deducting tax question

[teoconca]

Hi RFers,

I am planning to finish my basement for couple reasons. Budget is $20,000.
- getting back the renovation tax credit
- claiming expenses for the basement for rental purposes

I don't know how much and how many years would I be able to claim expenses for tax purposes. Please advise if this is a good opportunity.

Thanks.

[ghostryder]

- claiming expenses for the basement for rental purposes



You can't expense them all in the first year. These are capital expenses and you would have to claim CCA if you want. But doing so could jeopardize your personal residence exemption.