If you are charging rent to a family member and not earning a profit or your expenses exceed the income you receive for rent, you do not have to claim this as income. CRA considers this to be a "cost-sharing arrangement" and does not require you to report the income, nor will they allow you to claim a "rental loss" for this.
This CRA document explains it quite well as "Renting Below Fair Market Value: https://bit.ly/2ON8b4T
Do you know if your Parents can still claim the rent they pay if you don’t claim the income because it’s just enough to pay taxes and insurance? I don’t see ever making any money in my situation, it’s just breaking even with the expenses if not loses. If they can’t then I will claim it and expenses even if it breaks even so they can claim the rent they pay. Any insight is appreciated.
lpaulose1454
New Member
sajidk
New Member
e-murray
New Member
tsang-philip
New Member
kassli
New Member
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.