I need clarification. I have a 2nd property (condo) however it is not rented out. Can i still deduct the expenses on it (property tax, insurance, etc)
Thanks
Yes and no.
To remain in compliance … If you have no rental income whatsoever, you cannot claim a deduction (you’ll get reviewed and disallowed to say the least). If you have rental income, your expenses should be pro-rated for the duration of the rental (if 6 months of rental income, then 6 months worth of expenses etc.).
You may be subject to UHT.
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A customer went through an audit about this. It was shown that the property was offered for rent but had no takers. The expenses were allowed. Otherwise they would have been capitalized.
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Correct - and must show a genuine intention to actively rent (ie not just one ad in a local newspaper or pinned on a bulletin board somewhere). “Available to rent” and “rented” are treated identically if active.
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