Hi experts, a client purchased an investment Condo $230k outside Canada in September 2022. It was rented out in 2023. Client paid some capital expenses as well as non-capital. I understand that capital expenses will be added to the ACB and will help at the time of disposition. I will be doing T1135.
However, where would I report the non-capital expenses such as Condo mtc fees, property insurance, Utilties installation, furniture, appliances, decor, water hookup chgs etc incurred in 2022. Basically, all those expenses which are incurred to get the property ready before renting it out. Where would I report these on 2022-T1? Or Should I capitalize everything.? I would appreciate your help. Thanks.
You would report that information on the T776 form (statement of rental income and expense). Just make sure to add the international rental address. Your client may also be required to file a T1135 return.
Thanks GuyWhoPlaysGolf. I will be filing T1135 for both spouses. Just a little clarification, even though there is no rental income in 2022, I would still be completing T766 for the expenses?