26 October 2005 External T.I. 2005-0117551E5 F - État des loyers de biens immeubles -- summary under Paragraph 18(1)(h)

In finding that travel and accommodation costs incurred by the taxpayer in dealing with a rental property at a distant location that had been left in an unsanitary and substandard condition by a deceased tenant were non-deductible, CRA stated:

[U]nless you incurred those expenses for the purpose of earning income from a business or property, you will not be able to deduct those expenses from your rental income for the 2004 taxation year.

… [I]t would appear that your travel expenses were incurred to monitor and manage the situation arising from the death of your tenant and not to earn income from the property.

In addition, because of the clear prohibition in paragraph 18(1)(h) … you cannot deduct in computing your rental income the meal and living expenses that you incurred while staying in Longueuil, as those are personal and living expenses.

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