Condo Rental Tax question

[Darkane]

So I own a two bedroom condo and rent half of it. I can claim half of the interest portion, and half the condo fees.

Using quick tax do I input it as the full amount, then 50% as the personal?

Or input half of the amount in the claim and then 50% as personal.

Little confused on this one.

[triplep]

you would claim the amount that that you actually received, half of the bills to get you to the final number, and you would claim 100% of it.


The 50% is just if you and a spouse or someone else owned the property.

My question is, why are you claiming it? You live there. It would be different if you didn't. But since you do, why don't you just not claim the income and expenses, and then when you sell it, you won't have to pay any capital gains?

[trevh]

Or better yet. Get cash from the tenant and have no worries

[davidI]

Originally posted by triplep
why don't you just not claim the income and expenses, and then when you sell it, you won't have to pay any capital gains?

Because that's tax fraud.

[triplep]

Originally posted by davidI


Because that's tax fraud.

Actually it isn't, I think the term you were looking for is called TAX EVASION.


Anyways, as far as claiming the income, yes you are supposed to, do people not do it? Yup all the time. In your case, I'd say 80% of the people don't bother, since they actually live there. If you didn't live there it would be a whole different ball game, since the CRA could check what properties you owned etc, and ding you with an audit. As far as the way they look for these things, I don't think your "information" would indicate anything to them that you are indeed renting a bedroom in your condo, since it is your name on the title, your name on all the bills etc etc. If you ever got flagged, it would be for a completely different reason.

Like I mentioned before:

Calculate your rent received, deduct the expenses you paid (not all of them, just 50% of the expenses) and that number you get, would be 100% attributed back to you.

[davidI]

Originally posted by triplep

If you ever got flagged, it would be for a completely different reason.

Like, for instance, his tenant filing his taxes using the same address?

[skandalouz_08]

But since you do, why don't you just not claim the income and expenses, and then when you sell it, you won't have to pay any capital gains?

If he lives there even if he's renting its considered his primary residence and not subject to capital gains when he sells.

[kvg]

Wait until they freeze your accounts while the audit you.It's not worth it just be legit.

[Sugarphreak]

...