Our parents moved in our home and pay rent do i need to claim this as rental income?
If you are charging rent to a family member and not earning a profit or your expenses exceed the income you receive for rent, you do not have to claim this as income. CRA considers this to be a "cost-sharing arrangement" and does not require you to report the income, nor will they allow you to claim a "rental loss" for this.
This CRA document explains it quite well as "Renting Below Fair Market Value: https://bit.ly/2ON8b4T
Our parents moved in our home and pay rent do i need to claim this as rental income?
Do you know if your Parents can still claim the rent they pay if you don’t claim the income because it’s just enough to pay taxes and insurance? I don’t see ever making any money in my situation, it’s just breaking even with the expenses if not loses. If they can’t then I will claim it and expenses even if it breaks even so they can claim the rent they pay. Any insight is appreciated.
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.
Sign In
Canada (English)
EN
