# Rental income taxation



## TestFlight (Oct 1, 2013)

Hi,

I would like to know whether I must declare rental income this year given the circumstances. I own a 3 bedroom home (in Quebec) and rent out my basement. I started doing this to cover some of the costs as my wife and I have separated, and I am now also renting an apartment (for myself). In my opinion, the rental income I receive is more of a cost splitting arrangement. The renter is legally considered a "roomer" and not a tenant since the owners live in the home (my wife) . So my question is: do I need to declare this rental income and pay taxes (would seem strange as my property is not owned to generate profit).

Thank you for the clarification.


----------



## stardancer (Apr 26, 2009)

TestFlight said:


> Hi,
> 
> I would like to know whether I must declare rental income this year given the circumstances. I own a 3 bedroom home (in Quebec) and rent out my basement.
> 
> ...


See above


----------



## Just a Guy (Mar 27, 2012)

Let's put it more clearly, income is subject to income tax. All income. Even if it's illegal, that's how they got Capone.

Now, that doesn't mean you can't use write offs to minimize or eliminate it.


----------



## TestFlight (Oct 1, 2013)

stardancer said:


> Hi,
> 
> I would like to know whether I must declare rental income this year given the circumstances. I own a 3 bedroom home (in Quebec) and rent out my basement.
> 
> ...


Thank you very much for all your help!

Just to clarify, the renter ("roomer") does not have a separate entrance and we share common areas (bathroom, kitchen, dining room). We've also eaten together on many occasions since we share the eating area. Does this change anything?

Since it appears I will need to declare the income, what can I deduct as expenses? Would any of these be allowed: Condo fees, hydro costs, mortgage payments, mortgage pre-payments, TV/internet, property taxes, furniture bought to furnish the rented room, etc. And if so, what portion of each? If my total costs for mortgage/hydro/etc sum to $2,000 and I receive $500 in rent.. will I eliminate taxes owing on that income?

Thanks!


----------



## Cal (Jun 17, 2009)

There are a few threads already on what to declare as expenses, just use the search feature. Or you can google it for your province or consult an accountant.


----------



## SpendLessEarnMore (Aug 7, 2013)

you can't deduct 100%. You will have to figure out how much % of the house the basement dweller is occupying in your house.


----------

