Wednesday, May 19, 2010

Can gift cards for kids for snow removal be written off for a income property?

Canadian answer please. For example - I give them gift cards for DVD rentals. I am repsonsible for removing the snow of my rental income properties.

Can gift cards for kids for snow removal be written off for a income property?
Yes, you can write off the gift cards for dvd rentals given to the kids, because the expense was incurred to earn rental income. This type of expense may also include a very expensive bottle of wine that you give to the neighbor for helping you to clear the snow occasionally for your rental property with his snow blower. However, you may wish to write down the names and addresses of the recipients, just in case the CRA questions the specific nature of the expense claim (i.e., DVD rental and bottle of wine) and wonder if you actually use them yourself.





I would not label the expense as advertising, as snow removal is a maintenance expense for the rental property.
Reply:Ok so you're having the kids shovel the snow and paying them in gift cards? That's akin to paying them in merchandise. You could write off the gift card. I'm just unsure if you write it off at cost or retail value. I'm thinking cost.
Reply:no they cannot be written off on income tax because gift cards are exactly what they are GIFTS duh duh duh thats all folks


No comments:

Post a Comment