I am trying to rent an apartment and the landlord is asking for Bank Statements. But I get paid in cash? What can I do to get proof of income?
proof of income
- Thread starter Graham741852
- Start date
Pay in cash or not, you will still need to report your income in your tax return. You should get T4 from your employer and file tax return every year.
Hello,
In your case, you have only one option if you didn't report your cash income and have your Income tax return showing your financial status. Request your employer to issue an employment verification letter stating your work status and earning mentioned in it. That may help you!
Hello,
I have purchased a home in 2021 for the sole purpose of living in it and starting a family. But due to extenuating circumstances (to provide compassionate care) I had to leave the country in 2022 and put a tenant temporary on a part of the property to get some relief meeting the mortgage commitments. My brother, who I was providing the care, did not survive the illness. Another reason for my stay outside the country was that my wife conceived and gave birth in 2022 while we were still in India. On doctor's advice, we decided to not undertake a long travel (14/15 hours flight from India to Canada). Since, my wife & I were Canadian citizens at the time of birth of our daughter, we applied for her Canadian proof of citizenship, however as per the official IRCC website it shows that it would take 17 months for her to receive the proof certificate. So, she is yet to receive her Canadian citizenship proof and once we have it, we will then apply for her Canadian passport. So, in a nutshell, we have been out of the country (most of 2022) due to some extraordinary circumstances and still cannot return until my daughter gets her Canadian passport. However, during 2022, we did not severe any residential ties with Canada nor established any with India. Our stay in India was completely temporary and forced since we were unable to return back to Canada.
To discuss this situation and to know if , I have been trying to reach CRA at 1-800-959-8281 for last 2/3 weeks but couldn't get an agent despite a long wait on the call. The tax filing dead line is coming up fast and I want to know what should I do about the rental income in view of the following?
a) Taking into account transactions from the last 6 months, I did a quick math by deducting bank interest charges, insurance, management expenses, property taxes, etc. from the rent collected and the net comes out to be negative $ value.
b) I have been outside the country due to extraordinary circumstances. My sole reason to buy a home was for personal use of my family and NEVER for rental income, etc. However, due to mounting interest rates, loss of employment income, etc. I had to protect myself from being insolvent and had put a portion of it on rent.
Since I couldn't get on the call with CRA, can any expert member suggest as to what should I do in this circumstances? Also, if you can suggest an alternate way to reach out to CRA. Any help will be great appreciated.
I have purchased a home in 2021 for the sole purpose of living in it and starting a family. But due to extenuating circumstances (to provide compassionate care) I had to leave the country in 2022 and put a tenant temporary on a part of the property to get some relief meeting the mortgage commitments. My brother, who I was providing the care, did not survive the illness. Another reason for my stay outside the country was that my wife conceived and gave birth in 2022 while we were still in India. On doctor's advice, we decided to not undertake a long travel (14/15 hours flight from India to Canada). Since, my wife & I were Canadian citizens at the time of birth of our daughter, we applied for her Canadian proof of citizenship, however as per the official IRCC website it shows that it would take 17 months for her to receive the proof certificate. So, she is yet to receive her Canadian citizenship proof and once we have it, we will then apply for her Canadian passport. So, in a nutshell, we have been out of the country (most of 2022) due to some extraordinary circumstances and still cannot return until my daughter gets her Canadian passport. However, during 2022, we did not severe any residential ties with Canada nor established any with India. Our stay in India was completely temporary and forced since we were unable to return back to Canada.
To discuss this situation and to know if , I have been trying to reach CRA at 1-800-959-8281 for last 2/3 weeks but couldn't get an agent despite a long wait on the call. The tax filing dead line is coming up fast and I want to know what should I do about the rental income in view of the following?
a) Taking into account transactions from the last 6 months, I did a quick math by deducting bank interest charges, insurance, management expenses, property taxes, etc. from the rent collected and the net comes out to be negative $ value.
b) I have been outside the country due to extraordinary circumstances. My sole reason to buy a home was for personal use of my family and NEVER for rental income, etc. However, due to mounting interest rates, loss of employment income, etc. I had to protect myself from being insolvent and had put a portion of it on rent.
Since I couldn't get on the call with CRA, can any expert member suggest as to what should I do in this circumstances? Also, if you can suggest an alternate way to reach out to CRA. Any help will be great appreciated.
You first need to determine you tax residency status with CRA. Did you notify CRA that you left the country? When did you leave in 2022? Makes a big difference if you’ve been gone for a few months or over a year. You severed residential ties by not living in Canada not to mention you rented out your property and didn’t physically live there. You can have a rental property in Canada and not be a tax resident. There are more things that are involved in the equation but you can’t just file your taxes without determining if you are a tax resident first. The CRA website will guide you how to go about determining this.
I suggest that you should continue try to contact CRA as they can provide you with the best guidance. My personal advice is that you definitely declare the net rental income based on your share in the property. You mentioned that you calculated net rental income based on last 6 months and it came out to be negative, what about the entire fiscal year from 1 Jan 22 to 31 Dec 22. Is that number negative too? Even if it is, I recommend that you declare that income. CRA may later impose penalty if you fail to declare any income on your tax return. In addition to this, I recommend that you also submit a letter to make an election under subsection 45(2) of the Income Tax Act. To make this election, attach a letter signed by you to your income tax and benefit return of the year in which the change of use occurs. Describe the property and state that you want subsection 45(2) of the Income Tax Act to apply. But remember, when you make this election, you cannot claim CCA on the property, you cannot designate any other property as your principal residence and you have to remain a resident or deemed resident of Canada. In your situation, I think that since you maintained residential ties with Canada and you're only temporarily outside of Canada with a clear intention to return back home to Canada, you may be considered a resident or a factual resident of Canada by CRA (confirm this with CRA on your call) and can therefore declare your home as your primary residence for a period of four years under subsection 45(2). But as I said before, you'll definitely have to report your net rental income without fail.
Best of luck,
*Note-This is not a legal advice*
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