Roommate asking for proof of residence?

[stealth]

...........:clap:

[Troll-ol]

Coles notes?

[FraserB]

Originally posted by Troll-ol
Coles notes?

OP asked for cash payment for rent to dodge taxes, renter wants letter saying he lived there. OP gets taken form behind by the CRA once they find out.

[Type_S1]

don't sign it. ignore him and never reply to anything. he will just go away.

[BrknFngrs]

Originally posted by Type_S1
don't sign it. ignore him and never reply to anything. he will just go away.

Orrrrr he can call CRA and mention that you had significant rental income coming in and that you aren't claiming it for tax purposes. If he's smart enough to realize it, he has you by the balls.

[adidas]

Prepare ur anus

I have no personal experience(on my anus), but past girlfriends have always used KY Jelly with me and it has been a success.

[Chandler_Racing]

Originally posted by stealth
[B]OK so here is the situation...

When I was living in Ft. McMurray I had a renter with me who was also a co-worker.

We agreed on a set "cash" price for the monthly rent. This was so I would not claim it on my taxes, and he got a decent deal in the end.


I hope the renter reports you.

Sleaze ball people who avoid taxes illegally piss me off.

[FraserB]

Originally posted by stealth

He is a pretty cheap, and sneaky guy when it comes to money

We don't need you to describe yourself more, especially in the middle of your post.

[stealth]

Originally posted by Chandler_Racing


I hope the renter reports you.

Sleaze ball people who avoid taxes illegally piss me off.

Yea, I hope so too. Because I am scamming the government from a shit load of money for the few months he was there.

And FraserB, good diss. How old are you?

Post deleted. Beyond once again proves that the majority of the replies stem from guys with the intellect of a 12 year old boy.

[heavyfuel]

Originally posted by Chandler_Racing


I hope the renter reports you.

Sleaze ball people who avoid taxes illegally piss me off.

Fuckin' rights... nobody likes the govt' but it is what it is. And it's not about to change anytime soon.

[CUG]

Well, as taxpayers, it's our duty to "avoid" taxes. What the OP is doing is "evading" taxes, and that's dirtbag.

[02WhiteWs6]

you don't have to claim income for rent if you live at the residence. It's a roommate, not a rental property. Give him what he wants, you didn't evade any taxes.

[ercchry]

Originally posted by 02WhiteWs6
you don't have to claim income for rent if you live at the residence. It's a roommate not a rental property. Give him what he wants, you didn't evade any taxes.

this is what i was thinking too... where is the profit? no profit no taxes :nut:

[stealth]

Originally posted by 02WhiteWs6
you don't have to claim income for rent if you live at the residence. It's a roommate, not a rental property. Give him what he wants, you didn't evade any taxes.

I wasn't aware of this... I thought any money collected, would be considered "income". But now that you mention it, I am not making a profit so how can that be income...

[rage2]

Originally posted by 02WhiteWs6
you don't have to claim income for rent if you live at the residence. It's a roommate, not a rental property. Give him what he wants, you didn't evade any taxes.
Uhh, no. If you're renting to someone and they're paying you rent, you have to claim rental income, at which point you can claim 25% of your mortgage interest, property taxes, etc. as home expenses. This is regardless if it's your primary residence, or a rental home.

The only way around that is if you get into a cost sharing agreement, where you give up the space for "free" and the money goes towards groceries and bills. Be warned that this arrangement will fuck you over if you don't have receipts to prove it. CRA aren't the most friendly people, you're guilty until you prove your innocence, so if you don't have receipts to prove cost sharing, it's assumed to be rental income.

[rage2]

Originally posted by ercchry
this is what i was thinking too... where is the profit? no profit no taxes :nut:

Originally posted by stealth
I wasn't aware of this... I thought any money collected, would be considered "income". But now that you mention it, I am not making a profit so how can that be income...
Profit and Income are totally separate concepts. You still have to claim income, even if it ends up being a loss.

In any case, if he's not deducting any expenses, then it would end up being a profit. If he does deduct expenses, and the expenses are more than the rental income, then it's a loss. Of course, you can't deduct expenses if you're renting at below fair market value and continue to incur losses... CRA *expects* you to make a profit.

http://www.cra-arc.gc.ca/E/pub/tg/t4036/t4036-e.html#P560_53022

God I hate taxes.

[stealth]

Thanks rage2 for the informative posts.:thumbsup:

[02WhiteWs6]

Woops. Sorry for posting some wrong info. Things must have changed. I had roommate for 6 yrs and never claimed any of it for the reasons above, which I thought were correct. It’s been over 7 yrs since I collected rent, in case anyone is thinking about reporting me.

I'd still give him the proof of residence. He probable needs it for a job, or drivers license. Even if your roommate did report you, you would almost be in a breakeven situation with the mortgage deductions etc. No profit, no tax.

[dexlargo]

Originally posted by 02WhiteWs6
I'd still give him the proof of residence. He probable needs it for a job, or drivers license. :werd:
I would provide it for him. Maybe you could just write a letter that says the dates that he lived at that residence but don't indicate if he paid rent or not - that might satisfy his needs.

If you do end up having to re-file your taxes, just take it as a lesson learned and move on, but don't deny your friend something he might need for a job/loan application/criminal record check/lease application/etc.

[HuMz]

Are you still supposed to declare a roommates rental income even if there will be no lease agreement and all payments are in cash?

[BrknFngrs]

Originally posted by HuMz
Are you still supposed to declare a roommates rental income even if there will be no lease agreement and all payments are in cash?

Yes. You're collecting rent in exchange for providing space