Question: I recently moved out of my old residence and have purchased another property. I am presently fixing up my old residence to rent it out. I am wondering if I am able to deduct the interest portion of the mortgage on the property if it is un-occupied for the few months it takes to get everything fixed up for rental. Thanks
In order to claim deductions you need to have a business or property that is ready and available to earn income. Once the property is ready and available for use, any expenses you incur may then be deducted from your taxable income.
In the period before the property is ready to use, you may be able to add the interest as well as the costs to improve or fix the property to the total cost of the property. This will increase the amount of tax depreciation, known as capital cost allowance or CCA, you can claim when the property is rented.