Posted on: 08-03-10 23:25:44
Hi
I hope you can help me with this one. I am married with 1 daughter. Few years ago I went into depression and it took me little over a year to recover. My income for tax year 2008 was $55,000. however I don't do 2 jobs like I used to and now I make about $26,000. Since January 2009 I have been renting my basement to supplement the lost income and make about $800/month.
I guess my question is, if I am to disclose the rental income when I do the tax return, would I end up paying to the government?
What would happen if my tenant end up putting my address and I don't file this rental income?
My wife doesn't work and I cant afford anything to the government.
Thank you
rumi
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Originally posted by rumi02
I guess my question is, if I am to disclose the rental income when I do the tax return, would I end up paying to the government?
-- The only way to find out it fill out the tax form and see if you owe any $$ to the CRA.
Quote:
What would happen if my tenant end up putting my address and I don't file this rental income?
My wife doesn't work and I cant afford to anything to the government.
-- whether your tenant puts your address or not - it is illegal not to disclose your income on your tax return. You will end up in paying fine for not paying tax on your rental income. I would strongly suggest disclosing your rental income. The tax on it will be much less than paying fine.
Originally posted by cdn_dude
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-- The only way to find out it fill out the tax form and see if you owe any $$ to the CRA.
Sure and only way to know if you going to win the casino by gambling.
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-- whether your tenant puts your address or not - it is illegal not to disclose your income on your tax return.
Who doesnt know that????
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You will end up in paying fine for not paying tax on your rental income. I would strongly suggest disclosing your rental income. The tax on it will be much less than paying fine.
Read the question again, I never said that I didnt want to reveal my rental income to CSA. I work hard and pay my tax.
First of all, when you rent your basement for a family, your utility bills goes up such as gas, electricity and hydro... The bill for January 2009 was $185. For 2010 January its $352.
Perhaps, someone else can give me some useful tips, instead of saying fine will be much less.
Thank you
rumi
Quote:
Originally posted by rumi02
Read the question again, I never said that I didnt want to reveal my rental income to CSA. I work hard and pay my tax.
-- Yes, I read your question and this is what you said about your probable intentions:
Quote:
Originally posted by rumi02
What would happen if my tenant end up putting my address and I don't file this rental income?
Quote:
First of all, when you rent your basement for a family, your utility bills goes up such as gas, electricity and hydro... The bill for January 2009 was $185. For 2010 January its $352.
-- Yes, and you charge rent that covers your increased utility bill; not by taking a "tax deduction" or tax evasion.
I wonder what "useful" tips you are looking for. If you already knew all of this, it is pointless to ask this question.
Say if your whole house including the basement is 3000 Sq. Feet. and the Basement is say 1000 Sq.Feet, then you take all of the expenses, including the City Taxes, Fuel (Any other), Hydro, Gas for heating, Water, Phone if they share, TV, Internet, maintenance costs such as Lawn Mowing, Snow Removal etc., etc., and pro rate them. You will have one third expenses attributed to the Basement and the Two thirds goes to your share. Make sure that it also takes care of the number of days they are occupying the basement and not for the whole year! unless they were there for the whole year from 1st of January to the last day of the year, which is 31st of December. If there were any special maintenance expenses just for the Basement, then they also can be clubbed into its expenditures.
Now You can claim 'the break' for the Basement Expenses, by claiming the same against the income from it. So, take away the share of the basement expenses from the income from the Basement. Make a spread sheet, what ever way you can put it into, and submit the same to the Tax Man when you send in the return.
You be fair and they will like wise give you the break. (No Audit)
Freddie.
I appreciate your input ftfl. Since we started renting the basement, i am paying almost $200 more on utilities, so this is something useful for me.
thank you
rumi
Your expenses probably will be higher than the income you are getting and hence more advantageous for you to declare income and claim deductions for expenses.
