Taxation on Rental income while myself renting !

[kiwi1959]

Hello

Assume I pay 1,300 CAD / mth for the apartment I am living in it because it's clause to work and down town.
Assume also I own a house rented out for the same monthly amount.
Apart from Tax property on the House, it's like I am living in my house without paying rental nor receiving rental income.

Question-1: Does CRC takes it the same way ? I mean does it tax me on the difference (here difference = 0 to simplify the case)

Question-2; I have TurboTax Canada old copy of the software. For simulation purposes, when I enter the amount of rent I am paying to the owner, the Tax balance does not change !!!

How deal with this equation witout moving to live in my house ? Please advise

Thak you

 

[zardoz]

Hello

Assume I pay 1,300 CAD / mth for the apartment I am living in it because it's clause to work and down town.
Assume also I own a house rented out for the same monthly amount.
Apart from Tax property on the House, it's like I am living in my house without paying rental nor receiving rental income.

Question-1: Does CRC takes it the same way ? I mean does it tax me on the difference (here difference = 0 to simplify the case)

Question-2; I have TurboTax Canada old copy of the software. For simulation purposes, when I enter the amount of rent I am paying to the owner, the Tax balance does not change !!!

How deal with this equation witout moving to live in my house ? Please advise

Thak you

I don't think that you can. Rent paid to you is "income". Rent paid by a renter is not "expenses". So, you get a tax hit. You should get a newer copy of Turbo Tax as rules change from time to time and you may get some tax credits if you are on low income, for example. This might interest you http://turbotax.intuit.ca/tax-resources/provincial-taxes/claiming-rent-on-your-taxes.jsp

 

[kiwi1959]

Thank you Zardoz

 

[kiwi1959]

Hi Guys,

For knowledge and to be investigated further:
Only Manitoba does consider the Rent paid as sort of expenses according to the Tax software TurboTax Canada 2014.

I hope the rest will do the same