If the total income for the recreation property exceeds your expenses for the property, there is a profit. In this case, the rental income should be reported on the T776 for real estate rentals. If there is no intent to make a profit, but it is more of a cost sharing, it might not be reportable.
Where you really might run into problems, is changing the ability to use a summer cottage as a potential primary residence to avoid any capital gains when sold. By renting it, you may have changed it into a revenue property. You should discuss this with an accountant to see where to go from here.
If the total income for the recreation property exceeds your expenses for the property, there is a profit. In this case, the rental income should be reported on the T776 for real estate rentals. If there is no intent to make a profit, but it is more of a cost sharing, it might not be reportable.
Where you really might run into problems, is changing the ability to use a summer cottage as a potential primary residence to avoid any capital gains when sold. By renting it, you may have changed it into a revenue property. You should discuss this with an accountant to see where to go from here.
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