I pay a rent of $1100 for an apartment. The lease is in my name and my son's name is there as a family member staying together.

My son started earning now and has to file his taxes. Can we two claim for tax filing that I am paying half the rent and he is paying half the rent. Will that be acceptable to CRA?

This arrangement is helping us in optimizing and reducing the taxes and also for claiming for Ontario Trillium benefits.

Thanks in advance.

Sammy

Dude,
As far as I know, if you are earning a decent amount, Rent is in no way related to lowering your taxes.
However, I would put the rent paid in the name of the higher earning member.
If you are on welfare, then put the rent paid in the name of the lower (that is the person on welfare or unemployed)
Trust this helps.

Murali Krishna.

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I am a Gents and not a Ladies.

Thanks, you are right, I made a mistake in writing - it is not reducing taxes. It is in maximizing the returns from Ontario Trillium benefits.

Is it possible to claim that a part of rent is paid by son, when the lease is not in his name, but it is in my name.

Thanks in advance, any suggestions?

Sammy

This Income Tax system is based on an HONOUR System. So, try and be honest with them. If you are paying the RENT and the rental receipt is in YOUR name, then your son does not enter the picture. They will consider it to be an internal arrangement.

The proof is in the RECEIPT. Do not play mischief with it. If and when the system audits you, they will go back as long a period backwards as they want and crucify you. The time and money that you will be spending to get out of their clutches then and for years to come in the future is not worth the few bucks that you are currently trying to save or make the scenario a favourable one to you in your claim for the TRILLIUM benefits.

Either you pay and get the receipt in your name or your son pays the rent and he gets the receipt in his name. AND if the receipt also corresponds with your statement as reported in the tax return for that year, THEN, your RECEIPT and the facts stated in the RETURN will be VERY CORRECT with the situation that you are playing with. Otrherwise, they will conside that you are manipulating the situation for your benefit. (That is not allowed.)

In short the return should match with the facts. So, get the receipts also made to correspond with the statements made in the return. (They don't give a S**T who pays the rent)

CAN YOU?

Good Luck.

FH.

Thanks for your reply. Receipts can not be issued in my son's name. Hence I will not make this 'internal arrangement'.

However, I think, it should be perfectly legal to share the rent and also to claim that way in tax filing , after all it is a family member's share in the family expenses.

If that is considered as 'internal arrangement' - then that 'internal arrangement' qualifies to be 'honored' as it is a 'honorable act' of sharing family expenses.

After reading your reply, I will not dare to share the rent in my tax filing papers. It is not really worth it.