Property transfer Tax and renting

My question is: Canadian-specific


Quit simply, we're buying a rental property in B.C. and have to pay the dreaded Transfer tax. Is it an expense for rental pueposes as we'll be renting the Lake Front Condo for the next five years?

david ingram replies:

The property transfer tax is NOT a deduction from rental income.  It is added to the purchase price along with legal fees and is a deduction against any taxable capital gain when you sell the property.

The same thing applies to 'fixing up' expenses to get it ready to rent.  These are considered capital and are added to the ACB of the purchase.