What expenses can you deduct for a second property in Canada? + MORE Sep 14th

If someone owns a second property, what can they deduct? Can they deduct the cost of purchasing or renovations?—Nicole

The types of expenses you can deduct for a second property

There are several expenses that can be deducted from a second property, particularly if it is designated as an investment property, meaning its purpose is to generate income for you.

Expenses such as interest costs, utilities, property tax, repairs and renovations can be deducted, according to the Canada Revenue Agency (CRA). Some expenses, called current expenses, are only deductible in the year you incur them. And others, known as capital expenses, are deductible in future years.

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Current vs. capital expenses

Current expenses are costs that you incur to maintain the property, such as minor repairs and maintenance, as well as interest, property taxes, professional fees (legal, accounting, bookkeeping, property management and auditing), advertising, and so on…

Most of us go through life assuming we’ll reach a ripe old age—and that’s fair, because most of us do. But if you have dependents, it’s wise to protect them from the financial fallout of your death—even if you’re still young and healthy—by getting life insurance. Your age is a pretty big factor when it comes to the type of life insurance you should get and how much you’ll pay for it. Read on for some insight on this, and a few other factors that may affect your premiums.   

How old you are affects life insurance premiums

“People should think about life insurance when they think they need it the least,” says Natalie Trimble, financial security advisor and investment representative for Freedom 55 Financial, a division of Canada Life. “The longer one waits to get it, the higher the chances that they may experience a health issue. With health issues or lifestyle changes, the possibility of increased costs or maybe even a rating is a direct result.” (A rating means being approved for coverage but also paying more for it…