Greetings,
I am renting %40 of my primary residence based on sq footage, could you please let me know how I can enter expenses on TurboTax and how CRA will know I am only renting small portion of my house (%40) so that it will not be considered as a capital gain in that tax year.
let’s say my property tax is $5k and %40 of it is $2k, but if I enter $2k, CRA does not know that I am only renting small portion of the property…
your response would be much appreciated.
The CRA doesn't really care about what percentage of your home is rented out. They only want you to enter the part of your expenses related to the rental portion, and not any personal use expenses.
My concern is I only rent %40 of the house sq footage - basically one room. But the issue is there is no way indicating how many percent I am renting - I don’t want to pay capital gain in the future as this is my primary residence and since it is a small sq ft is rented - it is exempted from capital gain. On Turbo tax there is no way of showing the percentage and I don’t want to have problem in the future. In the past my accountant could separate personal and rental expense so it was easier to provide the rental property percentage…