Buying a Rental Property - Question 4

4. How will deductions affect your profits?


By deducting certain expenses from your income, you can reduce the taxes that you owe. Applicable expenses include mortgage interest, property tax, insurance, property management, maintenance and utility bills. You can also deduct any losses from your rental property. If your expenses exceed your rental income, you can subtract your losses from any other source of income you have coming in.

 

Source: Canadian Living

Walter Warford

Walter Warford

Sales Representative
CENTURY 21 First Canadian Corp., Brokerage*
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