Tax fees on a rental property (T776)

Tax Topics
1

A taxpayer is employed full-time and owns a rental property.
They pay a fee to have the rental income included in their tax return via the T776.

Is the cost for preparing the T776 an eligible expense to include on the T776 under Professional Fees for that year?

In addition, the taxpayer purchased appliances totaling approximately $4,000. Would it be appropriate to capitalize these items as class 8 assets on the T776?

3

I would claim the total cost of preparing the tax returns, not just the T776 with the reason being the tax return was complicated by the T776.

1 Like
4

@benoit.associes1 thank you for your reply

In regards to my last question pertaining to the appliances totaling approx $4k for the rental unit would you capitalize these items as class 8 assets on the T776?

5

Yes, that would be correct.