Second home

[hmbredbury]

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

[TurboTaxKim]

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".

• CRA - Renting 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.

[hmbredbury]

Thanks, my question was answered.