Duplex, triplex, quadruplex — here's how to legally reduce your tax on rental income.
February 2026
You own a plex in Montreal — perhaps in the Plateau-Mont-Royal, Rosemont or Villeray — and you manage it yourself. You report your rental income every year. But are you really deducting everything you're entitled to? In most cases: no.
Many property owners leave money on the table, either because they don't know certain expenses are deductible, or because they don't keep the right documentation. This guide covers everything — with concrete examples — and also tells you what is NOT deductible, because that's often where costly mistakes happen.
Here is an overview of the 10 categories of deductible expenses covered in this article:
| # | Category | In Brief |
|---|---|---|
| 1 | Mortgage interest | Often the largest deduction — rental portion only |
| 2 | Property and school taxes | Municipal and school taxes, prorated if you live in the plex |
| 3 | Insurance premiums | Building, liability, and rent protection coverage |
| 4 | Routine maintenance and repairs | Immediate repairs (OPEX), not major renovations (CAPEX) |
| 5 | Management and administration fees | Property management firm, concierge, snow removal, software |
| 6 | Accountant and legal fees | Tax preparation, lease drafting, TAL representation |
| 7 | Electricity, heating, utilities | Only what you pay on behalf of your tenants |
| 8 | Advertising and marketing | Listings, pro photos, referencing services |
| 9 | Vehicle expenses | Prorated based on km driven for property management |
| 10 | Capital Cost Allowance (CCA) | Optional but powerful — classes 1, 6 and 8 |
This is often the largest available deduction. The interest paid on your mortgage is fully deductible for the rental portion of your building.
The full amount of your municipal and school taxes is deductible, prorated to the rented portions if you live in the building.
Keep your annual assessment notice from the City and your school tax statement.
Insurance costs related to rental operations are deductible. Make sure not to include coverage for your own unit if you live in the plex.
All expenses aimed at maintaining the building in its current condition are immediately deductible. However: once you improve rather than repair, you shift into CAPEX (capital expenditure) territory — which changes everything for your tax return.
| Deductible Now (OPEX) | To Depreciate Over Several Years (CAPEX) |
|---|---|
| Touch-up painting | Full kitchen or bathroom renovation |
| Faucet repair | Full plumbing replacement |
| A few damaged shingles | Complete roof replacement |
| Furnace maintenance (filter) | Furnace replacement |
| Professional cleaning | Full window replacement |
👉 To understand this distinction fully: CAPEX or OPEX: What's the difference for your plex or rental cottage?
All fees paid for managing your building are deductible: property management firm, concierge, snow removal, maintenance of common areas.
Professional fees directly related to your rental activity are deductible.
📌 Note: notary fees at purchase are not annually deductible — they are added to the capital cost.
👉 For everything on your rights and obligations toward tenants: Landlord Rights and Obligations in Quebec.
If you pay electricity, heating or water for your tenants (included in rent), these expenses are deductible.
Only deduct what you actually pay. If your tenants pay their own Hydro-Québec bill, that's not your expense to deduct.
Your expenses to find tenants are fully deductible.
If you use your vehicle to manage your plex (inspections, supervising work, picking up supplies), you can deduct expenses proportional to kilometers driven for rental purposes.
The CCA (Capital Cost Allowance) lets you progressively recover the cost of your building and its equipment, year after year. It's optional — but if you're not planning to sell soon, not claiming it means leaving money on the table.
⚠️ Watch out for recapture of depreciation on sale — plan ahead with an accountant
If you received a grant for work done — RénoPlex, Rénoclimat, Hydro-Québec, or municipal subsidy programs — that amount must be subtracted from the capital cost of your project (CAPEX). It is not declared as income, but it reduces the base on which you calculate your CCA.
Plex taxation is a mechanism that can be mastered. Keep all your receipts, clearly separate personal from rental expenses, and maintain your records throughout the year.
📌Concrete action: create a digital folder with a subfolder for each expense category (taxes, insurance, maintenance, management, etc.) and update it once a month. Your accountant will thank you in March.
👉 To complete your knowledge: How to report your rental income.
Q: Can I deduct all my renovations in the same year?
A: No. Major renovations (CAPEX) must be depreciated through CCA over several years. Only routine repairs (OPEX) are immediately deductible. The distinction is crucial — consult an accountant if in doubt.
Q: Can I deduct my own labour if I do the repairs myself?
A: No. Only amounts actually paid to a third party are deductible. Your personal time cannot be claimed as an expense, even if you invoice a nominal amount.
Q: How do I prorate expenses if I live in my plex?
A: Divide by the number of rented units over the total. E.g., you live in a triplex with 2 units rented: 2/3 = 66.7% of all shared expenses are deductible. For greater accuracy, use square footage instead.
Q: Are Airbnb fees deductible?
A: Yes, 100%. Airbnb commissions are considered marketing costs, fully deductible against your rental income.
