In 2021, Steven purchased a vacant lot in Etobicoke, with plans to build a residential duplex as a rental property on it.
The land was purchased on October 1, 2021, for $300,000 and Steven paid land transfer tax and legal fees on the purchase totaling $10,000. The purchase was financed with a mortgage. The mortgage interest is $1,000 per month and the property taxes are $300 per month, both starting in October 2021. Steven did not deduct any of these expenses on his 2021 tax return as a friend told him he shouldn't. Was that correct? Does he get credit for the mortgage interest and property tax expenses somehow for tax purposes?

Answer rating: 100% (QA)

No Stevens friends advice was not correct He should have deducted the mortgage interest and property ... View the full answer