Keeping good records for the real estate you own is more important than you may think. Here are the benefits:
It will support the deductibility of expenses
For rental properties, receipts for all expenses should be kept to substantiate your expenses. These expenses can include maintenance, utilities, mortgage interest, and property taxes. These receipts should be kept as per the normal CRA guidelines on keeping records.
It will support the cost base of the property
It is important to keep receipts for capital items, such as additions, as this will increase the cost base when calculating the capital gain when selling the property. This includes your personal residence. These receipts should be kept for the normal retention period after the property is sold.
