TAX QUESTIONS? YOU ASK LAH!

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Q: I purchased a residential house in 2025 and I was entitled to claim the first residential housing loan interest tax relief for YA 2025. If I rent it out in September 2026, am I still eligible to claim the tax relief for YA 2026?

A: You may claim the tax relief for YA 2025 as the property was not rented out and you did not derive any rental income from it during that year. However, once you start renting it out in September 2026, you will no longer meet the key condition that the property must not be used to generate any income, and therefore you would not be eligible to claim the tax relief for YA 2026 and any subsequent year if the property remains rented out.

Wishing you plentiful tax savings!

Zen Chow

YYC Tax Guru

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