Personal Finance

GF moving in - will her monthly payment to me affect my taxes?

  • Last Updated:
  • Aug 31st, 2021 11:31 pm
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[OP]
Newbie
Aug 29, 2021
1 posts

GF moving in - will her monthly payment to me affect my taxes?

Hello,

My girlfriend is moving into my condo that I own and pay the mortgage for and related expenses.

To help cover some of these costs, she will send me a monthly transfer of money.

Will this money now have to be claimed as income in my taxes. And if it does, is there a better way to do this?
Last edited by MrDisco on Aug 31st, 2021 12:29 pm, edited 2 times in total.
Reason: updated title
7 replies
Deal Addict
Sep 2, 2009
2389 posts
2417 upvotes
Ottawa
This would typically fall under a "cost sharing" arrangement and should have no income tax implications (unless you start charging too much that starts to be considered "profit" but that a more complicated thing)
Deal Guru
Dec 5, 2006
13030 posts
8271 upvotes
Markham
cloak wrote: This would typically fall under a "cost sharing" arrangement and should have no income tax implications (unless you start charging too much that starts to be considered "profit" but that a more complicated thing)
Would you need "mention" it somewhere in the tax filing?
Deal Addict
Sep 2, 2009
2389 posts
2417 upvotes
Ottawa
smartie wrote: Would you need "mention" it somewhere in the tax filing?
No: "You do not report this amount in your income, and you cannot claim rental expenses. This is a cost-sharing arrangement, so you cannot claim a rental loss."



As an aside and no longer part of the original question: it could get tricky in a split if the girlfriend is paying half the mortgage (without an agreement in place). The girlfriend, in this case, could try claiming she owns part of the house (not that she could win but she could go down that road. RULES VARY BY PROVINCE).
Last edited by cloak on Aug 31st, 2021 1:14 pm, edited 1 time in total.
Deal Addict
User avatar
Jul 29, 2013
1731 posts
1454 upvotes
Ontario
Would it be cleaner if she paid for groceries so not associated with the condo?
Open a joint account for shared living expenses excluding condo.
Deal Guru
User avatar
Mar 23, 2008
13006 posts
9961 upvotes
Edmonton
Keep in mind the OP isn't necessarily in the COTU (aka Ontario). Common law relationships and the breakup of them depends on the jurisdiction.

OP, as far as your original question goes (re: taxes), it's a non-issue. But there are other things you might want to consider.

C
Deal Fanatic
Jul 26, 2007
6683 posts
4247 upvotes
Toronto
She already paid taxes on her money earned. Unless she is a corporation that's paying you for services rendered, then you have to pay taxes on revenue gained.
Deal Addict
User avatar
Sep 14, 2012
2372 posts
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Montreal, QC
Robs1282 wrote: Hello,

My girlfriend is moving into my condo that I own and pay the mortgage for and related expenses.

To help cover some of these costs, she will send me a monthly transfer of money.

Will this money now have to be claimed as income in my taxes. And if it does, is there a better way to do this?
You don't need to claim it on your income taxes as others have mentioned but there are other financial/legal considerations that you might want to consider. For example, at break-up, it could turn ugly as she can claim that she owns part of the property depending on her contribution.

I know someone who did this, split the costs of mortgage, never got married, and then broke up. Both of them lawyered up. I don't speak to her about the topic but it wasn't pleasant based on my conversations around the topic. This happened in the province of Quebec where we also have a different civil law system so depending on your jurisdiction, you might want to formalize some sort of agreement regarding ownership percentage.

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