# Rental deduction



## bettrave (Jan 10, 2013)

Hi,

I rent a condo.
How can I deduct from the revenu, used furniture that I bought (since it's used, I don't have any invoice)?
Thanks.


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## Just a Guy (Mar 27, 2012)

I gather you're the landlord? You could have asked them for a receipt, they could have written you one. If you paid by cheque, you would also have had a paper trail...

If you paid cash, and didn't ask for a receipt, it's a bit late...

Personally, I wouldn't want to provide furniture as a landlord with the spread of bedbugs...


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## Guban (Jul 5, 2011)

You probably don't need an invoice or receipt.

Did you have an ad showing that your unit is furnished? That and a few photos showing what you included may be good enough in the case of an audit. Sometimes your personal used furniture becomes part of the property that is rented if you change from your residence to a rental. I hope that CRA would be understanding of the lack of receipts, and then claiming an ACB of the fair market value sounds like a reasonable thing to do.


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## gt_23 (Jan 18, 2014)

bettrave said:


> Hi,
> 
> I rent a condo.
> How can I deduct from the revenu, used furniture that I bought (since it's used, I don't have any invoice)?
> Thanks.


If you paid in cash, keep a copy of the bank statement showing the DR for the cash. In addition, keep a digital or print-out copy of the advertisement if the furniture was advertised for sale online. I have bought used furniture privately for cash in the past for my rentals and always do both of these. A CRA audit is rare, but if does happen, these actions will improve your odds.

Finally, I believe furniture is considered a capital expense (Class 8 I think?) and must be depreciated at the appropriate rate rather than deducted from revenue as you suggested.


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## Canadian (Sep 19, 2013)

gt_23 said:


> Finally, I believe furniture is considered a capital expense (Class 8 I think?) and must be depreciated at the appropriate rate rather than deducted from revenue as you suggested.


+1 that is correct. Furniture and appliances (new or used) should be classified under Class 8 and depreciated annually at a rate of 20%.


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