Posted by Ravi Gulati | Posted in Financial Planning, Uncategorized | Posted on 17-09-2012
Renting out part of your principal residence is a great way to earn some extra income and enjoy the company of others all at the same time. Let’s look at what this means from a tax point of view :
1. Partial use to earn income…………….
If you fail to meet these tests, CRA may consider all or part of your property ineligible for the principal residence exemption and you could pay some tax on a sale of the home later.
2. Change in use
3. Reporting income
4. Deducting expenses