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Is legal fee tax deductible expense ?

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  • Is legal fee tax deductible expense ?

    I know that a legal fee is tax deductible when calculating rental income tax. However I am not sure if I can do it in the following scenario.
    I bought a house in 2019 and used it as my home. A year later in 2020 I rented it out.
    Obviously I need to pay tax on 2020 rental income. Can I deduct the legal fee that I paid in 2019 from my 2020 rental income?

    Thanks

  • #2
    Although you've had a change of use, I doubt that you can claim expenses from a previous tax year.
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    • #3
      Was the legal expense and did the property start as a rental within the same financial tax year? Maybe this is the starting point. Eg legal expense maybe April 19 and rental started Jan 20

      Cheers

      Donna
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