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I had a rental house in Hamilton. My tenants moved out in May 2019. Thereafter, I prepared the house for sale and got it listed for sale. The house was sold in 4 months. During this time, the house was vacant and I was paying the mortgage, utilities, property tax and insurance. Can these expenses be considered as Capital Expenses or Outlays While calculating Capital Gain? Secondly, should I show these expenses for the 4 months in the Statement of Real Estate Rentals T776(18) or not. Thank you.
Carrying costs-incurred for a vacant home ready for sale cannot be considered as capital expenses or outlays when calculating the capital gain realized on the sale of the vacant home. Furthermore, they cannot be shown as expenses on form T776 during the vacancy period.