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[OP]
Jr. Member
User avatar
Nov 8, 2005
198 posts

Is Rent Deductible?

Hi guys, I know this is probably the dummest question of the form but I want to make sure..

Is rent deductible on your taxes? Can you deduct the rent you pay annually from your income? I live in an apartment by the way.

I tried googling this but I haven't got a clear answer. I am thinking it isn't deductible.

Any input appreciated.
20 replies
Newbie
Feb 20, 2007
6 posts
If you don't have a home-based business, I do not believe you can claim your rent.

If you do have a home-based business, I heard you can claim a portion. That's all I heard, someone else probably has better answer on this...

Or, call CCRA at 1-800-959-8281. Press * to speak to someone. I called last night 8:30 (and on a weeknight 2 weeks ago), the wait time is less than 2 minutes.
[OP]
Jr. Member
User avatar
Nov 8, 2005
198 posts
thanks..

I believe thats how it works too. If you run a business from home, you can claim some amount of your rent. I think thats how it is. But I dont have a home business.. I am just renting... what is the answer to that. thanks
Member
Mar 17, 2006
268 posts
13 upvotes
If you live in Ontario, there is a Property tax credit that you can claim if you pay rent or property tax. Not sure about other provinces. The amount of the credit is reduced as your income goes up so depending on the amount of income you earn, this credit may or may not be effective.

[QUOTE]
Property tax credit (lines 6 to 12)

You can claim this credit if all of the following conditions apply:

* you were a resident of Ontario on December 31, 2006;
* rent or property tax on a principal residence (as defined below) was paid by or for you in 2006; and
* you were 16 or older on December 31, 2006.

You cannot claim this credit if on December 31, 2006, you were under 19 and you lived with someone who received a Canada Child Tax Benefit payment for you in 2006.

A principal residence is a housing unit in Ontario that you usually occupy during the year. It can be a house, apartment, condominium, hotel or motel room, mobile home, or rooming house. A principal residence does not include a residence exempt from municipal and school tax.[/QUOTE]

http://www.cra-arc.gc.ca/E/pub/tg/5006- ... P208_24451
Deal Fanatic
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Apr 6, 2003
8454 posts
16 upvotes
I've deducted my rent the last few years and don't own a home business.
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Deal Addict
Feb 24, 2007
1371 posts
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ullyeus wrote: I've deducted my rent the last few years and don't own a home business.
If you ever get audited, you gonna face some large tax penalties.
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Apr 6, 2003
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halflife150 wrote: If you ever get audited, you gonna face some large tax penalties.
Not in Manitoba, it's all legite.
People who are in my gang: Nikita, Spidey, weedb0y, jcoltage, deep, pitz, Sylvestre, Icedawn, 3weddings, Ambermoon, CSK'sMom, jazzsax, bokep, matdwyer, Dash, KorruptioN, angekfire, sxz, WontonTiger, YYZFA, king_george, 45ED, sxz, Ojam

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Deal Addict
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Sep 30, 2003
3908 posts
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Toronto
What WildEmu posted is correct.
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There is no happy ending
Deal Addict
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Jan 9, 2007
4071 posts
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You don't have to own a home business to deduct rent. I've done it for a few years now... WildEmu is bang on with this.
Deal Addict
Dec 28, 2006
2450 posts
112 upvotes
Saskatoon
ullyeus wrote: Not in Manitoba, it's all legite.

No it doesn't. There is an education property tax credit but that is not a deduction.

Tax credits and tax deductions are not the same thing.
Deal Addict
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Jun 18, 2004
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I'll have to check my Act, but isn't there some bizzaro situation where if you were travelling for work purposes and had to rent a trailer up in the Yukon or something you could claim it as an employment related expense?
Deal Addict
Sep 20, 2006
1507 posts
56 upvotes
WildEmu wrote: If you live in Ontario, there is a Property tax credit that you can claim if you pay rent or property tax. Not sure about other provinces. The amount of the credit is reduced as your income goes up so depending on the amount of income you earn, this credit may or may not be effective.



http://www.cra-arc.gc.ca/E/pub/tg/5006- ... P208_24451
You can not deduct rent. It is a provincial tax credit, and it actually goes away after you make a certain amount of gross income for the year. I believe its around 40k. Therefore if you make more than 40k you won't get the rent credit, it's used the same as the property tax credit. If you're married then you get the lower income spouse to claim it.

Therefore when you or someone is preparing your taxes, make sure they include your rent paid in the Ontario tax return. You will also need to cite who it was paid to, and for what address. The system will automatically calculate for you if the rent credit even applies.
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Apr 6, 2003
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Chigu wrote: You can not deduct rent. It is a provincial tax credit, and it actually goes away after you make a certain amount of gross income for the year. I believe its around 40k. Therefore if you make more than 40k you won't get the rent credit, it's used the same as the property tax credit. If you're married then you get the lower income spouse to claim it.

Therefore when you or someone is preparing your taxes, make sure they include your rent paid in the Ontario tax return. You will also need to cite who it was paid to, and for what address. The system will automatically calculate for you if the rent credit even applies.
thanks for clarifying.
People who are in my gang: Nikita, Spidey, weedb0y, jcoltage, deep, pitz, Sylvestre, Icedawn, 3weddings, Ambermoon, CSK'sMom, jazzsax, bokep, matdwyer, Dash, KorruptioN, angekfire, sxz, WontonTiger, YYZFA, king_george, 45ED, sxz, Ojam

*WE GONNA GIT YOU!
Deal Addict
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Mar 31, 2001
3785 posts
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Kitchener
Chigu wrote: You can not deduct rent. It is a provincial tax credit, and it actually goes away after you make a certain amount of gross income for the year. I believe its around 40k. Therefore if you make more than 40k you won't get the rent credit, it's used the same as the property tax credit. If you're married then you get the lower income spouse to claim it.

Therefore when you or someone is preparing your taxes, make sure they include your rent paid in the Ontario tax return. You will also need to cite who it was paid to, and for what address. The system will automatically calculate for you if the rent credit even applies.
Awesome.

It is not worth getting irritated, it is not worth it.... Wish everyone happiness, and you yourself will be happy.
Member
Oct 26, 2006
210 posts
788 upvotes
North York
look30 wrote: Awesome.

Property Tax Component

You may be eligible for the property tax component for 2010 if all of the following conditions apply:

* on December 31, 2010,
o you were a resident of Ontario; and
o you were 18 years of age or older; or you had a spouse or common-law partner; or you were a parent and lived with your child; and
* for 2010, rent or property tax on a principal residence (as defined below) was paid by or for you or you lived in a designated Ontario university, college or private school residence.

A principal residence is a housing unit in Ontario that you usually occupy during the year. It can be a house, apartment, condominium, hotel or motel room, mobile home, or rooming house.
Calculating occupancy cost

Your occupancy cost only covers the period in 2010 that you lived in your principal residence in Ontario.

If you were a homeowner, enter the property tax paid in Ontario on your principal residence in 2010 on line 3 of Form ON479 and beside box 6112 of Form ON-BEN.

If you rented, enter the rent paid in Ontario on your principal residence in 2010 in box A of Form ON479; then enter 20% of this amount on line 2. Also, enter your rent beside box 6110 of Form ON-BEN.

If you were a farmer who paid property tax, enter the property tax paid for your principal residence and one acre of land on line 3 of Form ON479 and beside box 6112 of Form ON-BEN. If you were a farmer who paid rent, enter the rent paid for your principal residence and one acre of land beside box A of Form ON479; then enter 20% of the rent paid on line 2. Also, enter your rent paid beside box 6110 of Form ON-BEN.

If you lived in a non-seasonal mobile or modular home, you base your occupancy cost on a claim for property tax. The amount to enter on line 3 of Form ON479 and beside box 6112 of Form ON-BEN is the combined total of the property tax you paid for your home plus the property tax that your landlord/site owner paid for the lot you leased.

If you lived in a long term care home (for example, nursing home, hospital, charitable institution, group home, chronic care facility or a similar institution), and the institution paid full municipal and school taxes (e.g., a private long term care home), your occupancy cost must not include any amounts paid for anything other than rent. If the nursing home does not break down the cost of room and board (meals, laundering or other services) on your receipt, you can claim an amount of up to 75% of your total payments as rent.

Your occupancy cost cannot include amounts such as:

* rent paid for a principal residence that is not subject to municipal and school tax;
* payments to relatives or friends who are not reporting the payments as rental income on their returns;
* property tax or rent paid on part of a home you used for rental or business purposes; or
* property tax or rent paid on a second residence, such as a cottage, if you claimed property tax or rent on your principal residence for the same period.

If you and your spouse or common-law partner lived together on December 31, 2010, your occupancy cost is based on the total rent or property tax paid during the year, including amounts paid by each spouse or common-law partner during a period of separation.

If you and your spouse or common-law partner separated during the year and lived apart on December 31, 2010, your occupancy cost is based on your share of the rent or property tax for the part of the year before the separation, plus your own rent or property tax after the separation.

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.

Supporting documents – Whether you are filing electronically or filing a paper return, keep all of your property tax or rent receipts in case we ask to see them at a later date.
Member
Oct 21, 2008
368 posts
99 upvotes
Toronto
You can certainly claim rent. I've had many tenants over the years ask me to provide them with rent reciepts they lost because the govnt wants proof of the rent they payed as they were claiming a deduction for it.
Sr. Member
Aug 16, 2010
538 posts
121 upvotes
Thornhill
furtado_4real wrote: You can certainly claim rent. I've had many tenants over the years ask me to provide them with rent reciepts they lost because the govnt wants proof of the rent they payed as they were claiming a deduction for it.
Your tenants are claiming a tax CREDIT, not a tax DEDUCTION, which is the distinction that people here are trying to make. They are not the same thing.
Deal Addict
Aug 1, 2008
1554 posts
81 upvotes
Ottawa
KawaiiTentacleBeast wrote: I'll have to check my Act, but isn't there some bizzaro situation where if you were travelling for work purposes and had to rent a trailer up in the Yukon or something you could claim it as an employment related expense?

If the rented location is more than a certain distance from where you live....yes. I did this while working in Montreal and living
in Ottawa. Had an apartment in Montreal for during the week and it was a deduction.

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