I own a corporation. My wife and I are the sole shareholders. We use our private home for the reception and office of the corporation. (Calculated 23% of the home is used for the corporation). The corporation pays us $600/month. So we've got $7,200 in rental income for 2019.**
At the same time, we have expenses, like: insurance, repairs, utilities, property taxes, mortgage interest, etc. Totaling: $25,000**
So....
1) Where do I enter the $7,200 in income for my personal taxes?
2) Where do I enter these $25,000 in expenses?
Note: I am NOT filing as a small business owner. I am filing as an employee of the corporation. FYI: I do NOT have a GST number for me personally. When I was entering about Rental Income, it was asked for GST number. So.... I'm thinking I'm not doing this right....
**Not the real numbers. Just an example
Hi, thank you for using Intuit TurboTax Live Community
Generally all rental income from a property you own is reported on form T776. The income and expenses can be reported on this CRA form.
TurboTax has a great article for rental income:
Hope this helps
Thank you. Regarding the 23% of expenses I need to charge, do I just calculate that on my own?
Like say there were $100 for utilities. I just go ahead and enter $23?
Or do I put the whole amount of $100 and then somewhere put that I’m only claiming 23%?
Also, I got a warning about “You have claimed CCA or other carrying charges and deductions on your rental properties which may have alternative minimum tax implications on T691.” I don’t understand what this means.
first of all, I don’t have any capital costs with regards to the rental. And I don’t know what “carrying charges” are.
Hello again. I think I figured this about about the CCA.
We paid $6,559.35 for a new heat pump for the house. So the 23% portion turned out to be $1,508.65. I think that is where the error is coming up about "you have claimed CCA..." (I didn't have any assets entered.) So I added that in as an "asset"
I entered in an asset of "Leasehold" (class 13) for this expense.
We installed it 15/02/2019. So I put that as the Acquisition date. Not sure the "Expiry date" is referring to. It has a 10 year warranty. Should I put 15/02/2029?
Also, I put "yes" for "Accelerated Investment Incentive (AII)". Not even sure what that means, but it sounds good.
Turbo tax get a recommended calculation of $226.29 for "CCA For Year". So I just kept that amount.
Just letting you know what I've entered. Can someone please comment if it sounds like I've done it correctly?
Thanks!!