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Returning Member

Should you report occasional recreation property income?

 
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Accepted Solutions
New Member

Should you report occasional recreation property income?

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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1 Reply
New Member

Should you report occasional recreation property income?

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.

View solution in original post