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New Member
posted Feb 11, 2020 10:33:04 AM

Second home

We purchased a condo for a parent to live in. We paid for it and also paid for all renovation and moving expenses from one province to another. We receive a monthly fee from the our parent but it does not cover all expenses, so we pay the balance. This is definitely not an investment to make a profit. The question is, do we even need to report this on our tax return. If yes, how and what information do we include? 

Thanks, Heather

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2 Replies
Level 15
Feb 11, 2020 5:30:32 PM

You likely will not have to claim this on your tax return. The following CRA article how to treat rental income & losses when renting to a family member or friend at "below fair market value".

 

Here are a few reasons why you likely will not have to report the income:

  • You have no reasonable expectation of earning a profit on this property. 
  • Your expenses exceed your income from the property.
  • You are charging a relative less rent than the fair market rental value of that property.

New Member
Feb 14, 2020 5:25:15 AM

Thanks, my question was answered.