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Motor vehicle expenses for rental property income


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Regarding motor vehicle expenses, there is a section of " Addition of a vehicle" which makes me confused. This is the first year I claim the vehicle expense for rental property, I am confusing if I should input the value of purchased vehicle in the field of "Opening balance of the undepreciated capital cost" or should I left blank this field and input under " Addition of a vehicle"? Seeking your help to explain the meaning of these fields. Thanks




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Hello Huong,

Enter as an addition and leave the opening UCC blank.



When can you deduct motor vehicle expenses?

You can deduct motor vehicle expenses in the following circumstances:

    If you own one rental property – You can deduct reasonable motor vehicle expenses if you meet all of the following conditions:
        you receive income from only one rental property that is in the general area where you live
        you personally do part, or all, of the necessary repairs and maintenance on the property
        you have motor vehicle expenses to transport tools and materials to the rental property

You cannot deduct motor vehicle expenses you incur to collect rents. These are personal expenses.


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