Can you claim revenues and expenses on non-authorized rental suites?
I was just wondering if you are allowed to claim revenues and expenses on non-authorized rental suites? For example, if I have a basement suite in my house, I rent it out for $800 a month. According to my city, it is not authorized. But, I still want to make sure I claim revenue and also be able to claim expenses related to the suite.
As far as I know, the CRA doesn't care if my suite is authorized or not, that's not their problem, they just want to make sure i'm paying my taxes. Am I right in this thinking?
Will the CRA ask me if my suite is authorized or not? or do they just care about getting their taxes?
The reason I ask is because a co-worker told me that because my suite isn't authorized I won't be allowed to claim any expenses related to it, but I still have to claim revenues.
Is this the case?