A rental-property budget should record every cash expense, but tax treatment is a separate classification. Current and capital expenses, personal portions, co-ownership, interest, and capital cost allowance require the applicable CRA rules and property facts.
Decision points
- 01
Track cash outflow even when deductibility is uncertain.
- 02
Do not classify capital work as routine maintenance by convenience.
- 03
Preserve invoices, dates, purpose, and ownership allocation.
Build a complete cash ledger
Record insurance, interest, professional fees, management, repairs, utilities, property tax, strata costs, advertising, travel where applicable, and capital projects. Include non-deductible or uncertain items so the cash model remains complete.
Create a separate tax review
The CRA distinguishes current and capital expenses and provides detailed rules for rental income, ownership, personal use, and capital cost allowance. A calculator cannot classify a transaction or determine the amount claimable.
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