Should I claim my condo as a rental, my daughter is living in it and rent paid is way below my expenses or put her as a co-owner (I live in a house)?

my condo expenses are 35% more what I receive as a monthly payment from my daughter. Is it better to put her as a co-owner and get home-owner tax discount. I live in another town in a house?

529

Moderator

Oct 31, 2019 1:13:58 AM

If your child pays less than the amount that you would charge a person off the street for rent, then the CRA will likely see this as a “cost-sharing arrangement”. So you can’t claim the income or the expenses.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4036/rental-income-2016.html#P558_52811

You also can’t put your daughter as co-owner unless she is legally a co-owner (name on the ownership, property tax bill, etc…).

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Should I claim my condo as a rental, my daughter is living in it and rent paid is way below my expenses or put her as a co-owner (I live in a house)?