Personal Finance

Claiming Rent on Tax Return

  • Last Updated:
  • Jan 24th, 2009 2:24 pm
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Sr. Member
Jul 30, 2008
648 posts
1 upvote

Claiming Rent on Tax Return

Officially, my mom pays the rent via her cheques. However, I contribute to the rent, albeit in an unorthodox way. This year, I gave her money to contribute for last year's rent. Is there a way to claim this on my 2008 tax return, given that I didn't give it to her until the year after, even though it was meant for my portion of 2008 rent?
14 replies
Deal Addict
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Oct 12, 2002
3914 posts
1 upvote
I think if your Mom gives you a receipt for the amount of rent that you paid for 2008, that would be okay. Just attach the receipt to your 2008 tax return when you file it. But it's important that your Mom deducts your portion of the rent from the rent she paid in 2008. I'm not a tax expert or anything, but I can't see why it wouldn't be okay.
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Dec 6, 2005
210 posts
You can't claim rent or mortgage payments on your tax return unless you have a home office/business and even then its only a percentage.
Deal Fanatic
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Nov 12, 2003
7793 posts
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waterhat wrote:
Jan 22nd, 2009 7:03 am
You can't claim rent or mortgage payments on your tax return unless you have a home office/business and even then its only a percentage.
wrong.

You can claim rent as long as you have receipts for rent (in case you are audited) and you make I believe less than 42k per year.

You can only claim 20% of that total though for Ontario Credits
Sr. Member
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Mar 24, 2007
628 posts
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waterhat wrote:
Jan 22nd, 2009 7:03 am
You can't claim rent or mortgage payments on your tax return unless you have a home office/business and even then its only a percentage.
You can claim rent to get Ontario tax credits.

You may or may not be ok with CRA depending on whether they review your file and then whose desk you happen to land on.

This is from CRA:

[INDENT]Your occupancy cost cannot include amounts such as:

payments to relatives or friends who are not reporting the payments as rental income on their returns;
-------------------------------------------------------------------------
If you shared a principal residence with one or more persons (other than your spouse or common-law partner), your occupancy cost is based on your share of the rent or property tax you paid for the year.[/INDENT]

Occupancy cost is rent + property taxes. Depending on how they decide to interpret things, who could have an issue. You should be ok as it says that you can share rent, but obviously your name is not on the lease. As Rometiklan mentioned though, if you are claiming rent, you have to make sure that your mom doesn't claim the full amount or you are toast if they ever review your file.

Sorry I can't be more clear. You could try Calling CRA and seeing if you could get a straight answer. :lol: Good luck! 1-800-959-8281
Deal Addict
Aug 21, 2007
4590 posts
210 upvotes
Markham
I would frame it as you and your mother being roommates. When she prepares her return, she should only claim her actual portion of the rent. When you do yours, claim the portion that you paid.

For example, if the rent is 1000/month, and you pay your mom 200/month, you should claim 200/month and your mom should claim 800/month. The way I see it, as long as this is what is actually happening, it shouldnt really matter how the cheque gets paid to the landlord.
Newbie
Sep 16, 2008
47 posts
5 upvotes
Edmonton
ummmm...

am I missing something here? since when is rent tax-deductible? Is this a special provincial rule?
Deal Fanatic
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Sep 13, 2005
6773 posts
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Ottawa
It's a provincial thing. I was shocked to see rent eligible when I moved here. I make too much to get anything back :(
Newbie
Sep 16, 2008
47 posts
5 upvotes
Edmonton
ah, ok, so it's Ont only. As you can see, being at the 59th parallel, I'm not from Ontario ;)
Sr. Member
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Mar 24, 2007
628 posts
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Dealon, I agree with what you are saying except that OP's mom doesn't own the property. She is renting. At issue is that the rent receipt will be in her name only. OP is rent-sharing with mom and would be using a receipt from mom to back him up. They'll both need the original rent receipt and mom can only claim the portion less the portion OP is claiming. Make sense? This is all assuming that CRA doesn't get cranky.
Deal Addict
Sep 22, 2007
4599 posts
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Snufflufikist wrote:
Jan 22nd, 2009 11:24 am
ah, ok, so it's Ont only. As you can see, being at the 59th parallel, I'm not from Ontario ;)
It isn't Ontario only, but it's not all provinces either. Manitoba used to do it (not sure if they still do), Quebec you can claim the property taxes, etc. Of course there are regulations to it as well.
Jr. Member
Jul 6, 2007
104 posts
4 upvotes
mississauga
Just wanted to quickly clearify that the credit is not 20% of rent paid. If under 65, the credit is actually 20% of rent paid to $250 and then 2% of the remainder. This added to the sales tax credit, and they both get reduced significantly starting at $22K (4% reduction on everything above that until $0). Usually if you make about $30K your getting nothing from it.

(ie. $250 +2% even if you paid $10K that wouls be $450 + sales tax of $100 for $550. $36K you get nothing. If you paid less the income which gets you to $0 is even quicker.)
Deal Addict
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Jan 31, 2006
3767 posts
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Toronto
DarcyC wrote:
Jan 22nd, 2009 11:27 am
Dealon, I agree with what you are saying except that OP's mom doesn't own the property. She is renting. At issue is that the rent receipt will be in her name only. OP is rent-sharing with mom and would be using a receipt from mom to back him up. They'll both need the original rent receipt and mom can only claim the portion less the portion OP is claiming. Make sense? This is all assuming that CRA doesn't get cranky.
I am claiming rent but I never submit a rent receipt and CRA never ask me to submit one eversince I start renting, as long as your rent expense is reasonable CRA will not question those (in my case, I rent a room in Scarborough and pay rent for $450)
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Sep 21, 2007
4200 posts
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Winnipeg
Where can I find information on this for Manitoba residences?
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