Investment Real Estate Deductions: What To Keep And How Long To Keep Them (Part 3)

In terms of your investment real estate deductions, you really need to ensure that you keep a hold of the documents gathered during your real estate transactions. Being able to present the necessary documents is the only way that the CRA will consider you for Investment Real Estate Deductions when the tax season comes around. Keeping these documents will help to prove that you’re eligible for the deductions and they will help you to calculate your gain or loss when you sell the property.

For Investment Real Estate Deductions, you need to keep the following:

The valuation or appraisal for calculation the depreciation – for the entire duration of the property ownership, plus 3 years past that.

Capital expense receipts – for the entire duration of the property ownership, plus 3 years past that.

Repair receipts or other expense receipts – for 3 years past the return’s due date, showing the deduction.

Landlord’s insurance policy – for the period while you are awaiting the next year’s policy.

Landlord’s insurance payment receipt (also include the cancelled check or bank statement which shows that the check had been cashed) – for 3 years past the return’s due date, showing the deduction.

Landlord insurance receipts (also include the cancelled check or bank statement which shows that the check had been cashed) – for 3 years past the expense deduction.

LLC agreements or Partnership for real estate investments – for as long as the LLC or partnership exists.

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