Yes, there can be tax implications for renting out a portion of your personal residence in Canada. The income you earn from renting out a portion of your home is considered rental income and must be reported on your income tax return. Please contact us to understand the tax implications of renting out a portion of your personal residence in Canada.

There are several tax deductions you can claim when owning a rental property in Canada. These include: Interest on the mortgage for the property Property taxes Insurance Repairs and maintenance Legal and accounting fees Capital cost allowance (depreciation) on the building and any equipment or appliances Travel expenses related to the rental property, such as for inspections or repairs And many more

Yes, the cost of renovations or upgrades made to the rental property can be claimed as capital cost allowance (depreciation) over a period of time or upon the sale of the property.

Rental income must be reported on your personal income tax return in the year it was earned. You will need to complete and file a T776 form along with your tax return.

Net rental income is determined by subtracting any expenses that are eligible for deduction from the total rent received during the year. These expenses may include mortgage interest, property taxes, insurance, repairs and maintenance, and capital cost allowance, among others.

The sale of a rental property may result in a capital gain or loss. If you have a capital gain, you will need to report this on your tax return and may be subject to capital gains tax. If you have a capital loss, you may be able to use it to offset other capital gains in the current or future years.

Yes, there can be tax implications for renting out a portion of your personal residence in Canada. The income you earn from renting out a portion of your home is considered rental income and must be reported on your income tax return. Please contact us to understand the tax implications of renting out a portion of your personal residence in Canada.