# rental income?(help)



## pikachu520 (Mar 22, 2015)

So I want to know if this is doable.

My mother has no any income.
I have no income.

My mother has a condo-no mortgage. she pays property tax.
I live with her.

I pay her rent in cash.
I want to file that I pay rent to her so I can get refund from ontario trillium benefit.
I want to make sure her refund would not be affected.

To my understanding, she does not have any credit, so as long as her total pyable from line 435 is 0 then she does not have to pay tax. and if her income is below to ontario basic personal amount around 9600 then she does not pay any tax. 


http://www.fin.gov.on.ca/en/taxcredits/CalculatorQuestions.asp
when I play around on this website, I found out as my mom income increase till like 25000, it does not affect her refund. This website does not tell you any tax you need to pay to CRA as your income increase right?

So my question is , if I report 9000 rent that I paid to my mom. My mom will receive same amount of 
refund and no tax needs to be paid while I can receive more tax credit refund right?

Also, paying rent to mother is okay to CRA right? is a contract needed or my mom writes a slip would be fine?

Thanks


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## gt_23 (Jan 18, 2014)

pikachu520 said:


> Also, paying rent to mother is okay to CRA right? is a contract needed or my mom writes a slip would be fine?


Yes it is legit. However, I'm not sure it's in your mother's best interest. She will have to file a rental P&L statement as part of her taxes and write off a portion of the condo expenses that were used to generate the rental revenue. Furthermore, she might be giving up a portion of her capital gains exemption when she sells the condo, which is likely to be much more valuable than any Trillium refund you get in the short-term.


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## stardancer (Apr 26, 2009)

One thing I have seen CRA look at- if you are reporting 0 income, where are you getting the $9000 for rent from?


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## marina628 (Dec 14, 2010)

My friend has a room mate in her house and she does not claim any rent as they share a kitchen and really it is consider board and lodging not rent according to CRA.


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## marina628 (Dec 14, 2010)

stardancer said:


> One thing I have seen CRA look at- if you are reporting 0 income, where are you getting the $9000 for rent from?


My daughter has been audited 2 of last 3 years because she claims her rent which is nearly all her income.I suppose they questioned if it was the right amount ,obviously we help her monthly with expenses but they made her get receipts from the landlord and didn't take it at face value.


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## dougboswell (Oct 25, 2010)

You should call. The CRA helpline and ask. This is not an arms-at-length situation so you may not be able to claim your rent portion. Also if you claim no income CRA may start to ask questions on where the money that you are claiming rent for comes from.


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## behappytoday (Sep 16, 2011)

Isn't it obvious that people pay their rent and other basic life expenses out of their savings that they made during their employment times?


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