Hey @Ankur Jain , I focus on working with real estate investors and self employed individuals in my tax practice. I am an active LTR/STR investor in Ontario as well. Feel free to reach out and I can help you with your tax needs. I’m also on Instagram at @wachproperties

VTBs as a potential way to make a deal work for both sides are one great tool. But its important to remember that they do not work or should not tried to be applied to every deal. We purchased an apartment building with a 70% VTB a few years ago. Being an accountant, I presented the details of how the seller would benefit from smoothing out his capital gain over multiple years. I also pulled a Purview and saw how much he owed on the mortgage so I knew I had to bring at least that much capital to the deal to pay him out. It worked out well. The VTB was a great tool to make that deal work. I didn't bring it up until after we had a good relationship and I had walked through the building and done some due diligence.

Hey Ryan, this looks like a great deal. Here are some things to consider from a tax perspective: Claiming Renovation Expenses as a Rental Property Deduction: -Current expenses (like repairs or maintenance) are deductible in the year they’re incurred, but only once the property is ready to rent. -Capital expenses (like major renovations or improvements) are added to the property’s cost base and depreciated over time through capital cost allowance (CCA). -Since the property isn’t yet producing rental income, based on CRA rules you would likely be looking at capitalizing capital expenses during your reno/build phase. Creating a Carpentry Business to Deduct Expenses -If you run a legitimate business (such as a sole proprietorship or corporation) offering carpentry services, you could charge for your work. -Invoicing Yourself: If you invoice your rental property for your carpentry services, this income becomes taxable business income for your carpentry business. However, the rental property could capitalize these costs (adding them to its cost base) while you are in the reno/build phase. -GST/HST Implications: If your carpentry business is registered for GST/HST, you’ll need to collect tax on the services you bill to the rental property. The rental property (if it’s not yet generating income) wouldn’t be able to recover this tax via an input tax credit, which increases your overall cost. Keep in mind that the CRA may question the legitimacy of charging your own property for services if the primary intent is to generate deductions rather than running a bona fide business. If audited, the CRA could disallow the expenses if it finds the arrangement was solely for tax benefits without real business operations or market-rate transactions.

Hi everyone, great to be here. I'm an accountant that files taxes for real estate investors and self-employed individuals. Located in Hamilton, Ontario, I also own a portfolio of short term and long term rentals. I'm most active on Instagram at @wachproperties @Daniel Foch and @Nick Hill have one of the best real estate podcasts out there and I hope to bring value to this group. Drop me a line if you ever have tax questions.