first time investor.

[Deeker]

|Hello all,

I'm looking for some sound advise about renting my townhouse out that i live in now and buying another home for my family to live in.

the questions i have are more about the renting aspect.
1. what can i claim on my taxes for the rental?
2. what is claiming depreciation every year on the rental property about?

is there any books you can recommend about this type of information or maybe some of you have already done this and can enlighten me about this.

my rental is in Calgary.

Thanks

 

[Thomas Beyer]

You can and should claim all expenses related to your investment: property taxes, utilities ( if not paid by tenant), repair and maintenance ( usually called R&M), management fees, reasonable and actual travel expenses, reasonable and actual education fees, interest on your loans and depreciation ( also called CCA or capital cost allowance ). You may use up to 4% of the house value excl land per year to reduce income to zero. However on sale the CCA has to be recaptured ie it is not a tax reduction just a tax delay strategy !

There are many books. I have one ( 80 Lessons Learned on the road from 80,000 to 80,000,000 ), Don has a few good ones and there are numerous other authors on real estate investing too numerous to mention.

 

[MonicaPaslawski]

Don CAMPBELL wrote a book called "97 tips for Canadian real estate investors". I found it very useful information.