Lavie (anonymous)

Hi Allan,

I bought a run down property late last year for $315 thousand with the intention of turning it into a rental home for long term retirement planning. I had incurred about $60 thousands in material/labour costs, and carrying charges. I had started the ‘for rent’ process holding open houses and showed the property to prospected renters. I now find it very stressful and I’m considering selling. If it sells for $400 thousands, is my gain $85 thousands or $25 thousands. I can deduct the full expenses of $60 thousands? I keep a log of all of them and have all the receipts/invoices.

Thank you.