Solved: Personal portion of expenses If you rent part of t...

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
EnglishEN

Pick a language

Français English
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

How can I indicate my total expenses, personal portion, and rental portion on the T776 form?

Turbotax only asks for the rental expense portion in this section, do not include any personal portion of these expenses. This is for my primary residence. I need to indicate a percentage split. How can I do that?

The Real Estate Rentals Statement in Turbotax only asks to: 
"Include only the rental expense portion in this section, do not include any personal portion of these expenses"

There is no place to enter personal/total amount. Is this a Turbotax online software issue? 
1 Best answer

Accepted Solutions
Highlighted
New Member

How can I indicate my total expenses, personal portion, and rental portion on the T776 form?

Personal portion of expenses

If you rent part of the building where you live, you can claim the amount of your expenses that relate to the rented area of the building. You have to divide the expenses that relate to the whole property between your personal part and the rented area. You can split the expenses using square metres or the number of rooms you are renting in the building.

For example, if you rent 4 rooms of your 10-room house, you can deduct:

  • 100% of the expenses that relate only to the rented rooms, such as repairs and maintenance of the rooms; plus
  • 40% (4 out of 10 rooms) of the expenses that relate to the whole building, such as taxes and insurance.

If you rent rooms in your home to a lodger or roommate, you can claim all of the expenses for the part you are renting. You can also claim a portion of the expenses for the rooms in your home that you are not renting that both you and your lodger or roommate use. You can use factors such as availability for use or the number of persons sharing the room to calculate the allowable expenses. You can also calculate these amounts by estimating the percentage of time the lodger or roommate spends in these rooms (for example, the kitchen and living room).

Fill in "Part 4 – Expenses" on Form T776 as follows:

  • enter the full amount of each expense under "Total expenses"
  • enter the part of each expense that was for personal use under "Personal portion"
  • add up the amounts in each column and enter the result for"Total Expenses" on amount A, and enter the "Personal portion" on line 9949
  • subtract the personal portion total from the total expenses to get your total deductible expense. Enter this result on amount 7

If you are a co-owner or partner in a partnership, enter the personal portion of the expenses for all co-owners or partners at line 9949.

You cannot claim the expenses for renting part of your property if you have no reasonable expectation of making a profit.

You can read more here : https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/rental-expenses...

View solution in original post

8 Replies
Highlighted
New Member

How can I indicate my total expenses, personal portion, and rental portion on the T776 form?

Personal portion of expenses

If you rent part of the building where you live, you can claim the amount of your expenses that relate to the rented area of the building. You have to divide the expenses that relate to the whole property between your personal part and the rented area. You can split the expenses using square metres or the number of rooms you are renting in the building.

For example, if you rent 4 rooms of your 10-room house, you can deduct:

  • 100% of the expenses that relate only to the rented rooms, such as repairs and maintenance of the rooms; plus
  • 40% (4 out of 10 rooms) of the expenses that relate to the whole building, such as taxes and insurance.

If you rent rooms in your home to a lodger or roommate, you can claim all of the expenses for the part you are renting. You can also claim a portion of the expenses for the rooms in your home that you are not renting that both you and your lodger or roommate use. You can use factors such as availability for use or the number of persons sharing the room to calculate the allowable expenses. You can also calculate these amounts by estimating the percentage of time the lodger or roommate spends in these rooms (for example, the kitchen and living room).

Fill in "Part 4 – Expenses" on Form T776 as follows:

  • enter the full amount of each expense under "Total expenses"
  • enter the part of each expense that was for personal use under "Personal portion"
  • add up the amounts in each column and enter the result for"Total Expenses" on amount A, and enter the "Personal portion" on line 9949
  • subtract the personal portion total from the total expenses to get your total deductible expense. Enter this result on amount 7

If you are a co-owner or partner in a partnership, enter the personal portion of the expenses for all co-owners or partners at line 9949.

You cannot claim the expenses for renting part of your property if you have no reasonable expectation of making a profit.

You can read more here : https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/rental-expenses...

View solution in original post

Highlighted
New Member

How can I indicate my total expenses, personal portion, and rental portion on the T776 form?

Hi Meg, please see my screenshot. There is no place for me to fill in the "Total expenses" and "Personal portion" in TurboTax.
Highlighted
New Member

How can I indicate my total expenses, personal portion, and rental portion on the T776 form?

If you are only renting out a portion of a foreign property you will need to do the calculations manually
Highlighted
New Member

How can I indicate my total expenses, personal portion, and rental portion on the T776 form?

To confirm, I am renting out a portion of my primary residence in Canada. I do not need to fill in the "Total expenses" and "Personal portion" in TurboTax. Is this correct?
Highlighted
New Member

How can I indicate my total expenses, personal portion, and rental portion on the T776 form?

That is correct only enter the rental expense portion.
Highlighted
Level 1

How can I indicate my total expenses, personal portion, and rental portion on the T776 form?

Doesn't this mean that form T776 won't be filled in correctly.

Highlighted
Level 1

How can I indicate my total expenses, personal portion, and rental portion on the T776 form?

I am concerned about this as well. I live in my property with the co-owner and a roommate and there is no place to enter the personal portion. 

Highlighted
New Member

How can I indicate my total expenses, personal portion, and rental portion on the T776 form?

Sure seems like this problem (i.e. not being given--at least not in any transparent and clear way I can find--the option to provide an allocation factor so TurboTax calculates personal portion) persists today in the ONLINE version of TurboTax Canada for 2019. I.e. contrary to what this site says, I would say "NOT SOLVED".

 

I've used the boxed version of TurboTax in the past and it enables personal portion, no problem as I recall. I'm going back to the boxed version from now on...

v