Mobile Home Rental Expenses

Tax Topics
1

Hello, here is a question for the group.

I have a client who bought a mobile home on a rent-to-own basis in a mobile home park in March 2021. She bought it with the intention of renting it for income. She is collecting rental income from it since May 2021. Can any of the following be claimed as expenses:

  1. Mobile home insurance? Apparently, there is a special type of insurance for mobile homes.

  2. Lot fees? I assume they can be claimed like condo fees are.

  3. Property taxes?

  4. Mileage? The rental property is 125 kilometres from her home. Can she claim the mileage when she goes there to do/supervise any repair/maintenance work? To bring furniture, appliances, and/or accessories?

  5. If the mileage can be claimed, is it on a cost-per-kilometre basis using the CRA mileage rate?

I appreciate any assistance you can offer!

2

Really.

4 Likes
3

@joegrill01
These sound like pretty basic questions - stuff you’d be dealing with regularly, if you are a tax practitioner with clients. Answers you can find quite easily online at CRA’s website or taxtips.ca. Here’s some places you can start, if you’ve never done this kind of thing before:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/completing-form-t776-statement-real-estate-rentals/rental-expenses-you-deduct.html

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/rental-expenses-you-cannot-deduct.html

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/completing-form-t776-statement-real-estate-rentals/rental-expenses-you-deduct/motor-vehicle-expenses.html

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4

CRA Rental Guide

1 Like
5

Thanks for your help, Nezzer. I have dealt with a few rental properties before, I wasn’t sure if there was anything specific to mobile homes.

6

Thanks for your help, helga_spence. I wasn’t sure if there was anything specific to mobile homes.

8

If you review the previous answers on this thread, I am sure you will have the answer. The short answer is YES.