Kushwood

Where to input home improvements costs for renovations

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Hi I have been struggling to find out where to input these receipts from hardware stores I've gathered which pertain to improvements I've made to my home.  I am getting ready to sell the house within this year.  I haven't a clue as to where to input these receipt amounts but I was told to put it in capital gains.  Regardless I have not found the form to add to my tax file I have going online at the moment.  Could someone provide easy instructions as to how/where I can do this?  

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Hi Kushwood,

 

Is the house your principal residence or you get revenue from it?

 

For more information regarding rental income, please consult the CRA website at the following link:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/126/menu-eng.html

 

http://www.cra-arc.gc.ca/E/pub/tg/t4036/

 

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Thanks the info was helpful but I'm still not entirely clear as to where to input the info on ufile.  There is a page for Income/expenses under each rental unit (which I have 2 total).  During the year that I'm filing for which is 2016, this property was only revenue and not my principal residence.  Under the Income/expenses area of the rental unit there is a field labeled "Maintenance and repairs (for the rental units only)" which seems to be the field that most closely matches home improvement renovations that I'm looking to add.  Does this seem like the correct field for my capital expenses?  I'm looking for confirmation that I'm on the right track or some additional guidance as to where to input the expenses.

 

Thanks!

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Hi,

The help menu at the left of "Maintenance and repairs (related to the units rented only)" says:

Are you unsure whether a given expense is a capital expenditure or a current expense? Look at it this way: Is it improvement or maintenance? Improvement implies that the property is somehow upgraded. Maintenance is meant to return the building, room or other component to its original state or function. Improvements are capital expenditures, whereas maintenance repairs are current expenses.

It's up to you to decide whether or not these are maintenance or improvement expenses.

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Yes thanks Gaetan for your reply.  I've already read this help menu because it says that at the left of every field on that page and not only the maintenance and repairs field.  I understand the difference between maintenance and improvements; what I'm looking to enter is improvement costs.  So basically I am back to my original question of where do I input these capital expenditures?  I don't see an "Improvements" field anywhere on these rental property forms.  I have receipts for upgrades I've done on the property but I'm at a loss as to where to enter them into my tax file.  

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Hi,

In order to enter information about your current year additions, follow the steps below:

Please note that the land is not depreciable property. Therefore when you acquire rental property, only include the cost of the building.

Your rental property may belong to class 1, 3, 6, 31 or 32, depending on what the building is made of and the date you acquire it, please visit the link provided at the end of this document.

1- In the "Left side menu on the Interview tab", select the item "Rental income" and choose the subsection "CCA".

2- Choose the option that corresponds to your situation, and in the page that appears on the right, go to the line "Amount of capital additions" and enter the amount.

3- For the line "Application of half-year rule to current year additions" from the drop-down menu to your right, select "Yes".

4- If the property in question is not subject to the half-year rule, select "No".

Additions will appear on page 2 of federal Form T776, in sections B or C, as applicable.

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