A friend sublets their apartment to 2 people, they both pay 50% of the rent and the sub-letter pays nothing, is this considered taxable income?

My friend has a lease for a 3 bedroom apartment. He is sub-letting 2 of the rooms out to people who are each paying 50% of the rent each. My friend isn't paying anything towards the overall lease amount or contributing to the rent. Is the income received from the 2 roommates considered taxable income?

360

Moderator

Feb 24, 2022 11:25:25 AM

It depends. If your friend is making a profit on this income, then he would need to report it on his tax return. However, if he’s not making a profit and has no intention of doing so, then he doesn’t need to enter his rental income. But he will also not be able to claim any expenses, either. Please see this Canada Revenue Agency (CRA) webpage for more information: Renting below fair market value

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A friend sublets their apartment to 2 people, they both pay 50% of the rent and the sub-letter pays nothing, is this considered taxable income?