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[OP]
Jr. Member
May 3, 2016
149 posts
201 upvotes

Renting and Tax

Hello,

I am current renting an apartment with 2 other people. I signed the lease and I'm the leaseholder. In my landlord's eyes, I am subletting the 2 rooms out. So roommate A wants me to produce a rent statement/receipt. What happens in this case? Will it be considered rental income for me? And what negative impacts will it have towards me?

Thank you
8 replies
Deal Fanatic
Oct 26, 2008
6402 posts
2070 upvotes
BC
If Roommate A wants a receipt to claim the Ontario renter's tax credit he/she should have signed a separate lease with your landlord.

I suppose if you wanted to maintain harmony you could write out a receipt on behalf of the landlord.
Make sure he is clearly identified as the landlord and your signature is there only as his representative, so no tax consequence for you.

This presumes that the landlord willingly rented you the whole apartment and gave you freedom to sublet - an unusual state of affairs as standard leases typically forbid this.
Deal Addict
Dec 26, 2009
2790 posts
1465 upvotes
As long as you are subletting at market value without making profit i wouldnt worry about it.

I.e. if you pay $1500 for a 3bdrm and rent two rooms at $500 each.... there would be no profit so no risk of tax.

I would write a receipt stating that the tenant is "contributing $x per month towards rent at 2-123 your ave" or something similar to that
[OP]
Jr. Member
May 3, 2016
149 posts
201 upvotes
macnut wrote: If Roommate A wants a receipt to claim the Ontario renter's tax credit he/she should have signed a separate lease with your landlord.

I suppose if you wanted to maintain harmony you could write out a receipt on behalf of the landlord.
Make sure he is clearly identified as the landlord and your signature is there only as his representative, so no tax consequence for you.

This presumes that the landlord willingly rented you the whole apartment and gave you freedom to sublet - an unusual state of affairs as standard leases typically forbid this.
Thank you for your reply. I'm just so stressed that there will be implications for me. He does contribute evenly to the rent and I am not making a profit.

The landlord is actually a company specializing in student accommodations and they often allow this.

How should I word my signature? "Representing [Landlord]"?

Thank you once again. It really helped me!
[OP]
Jr. Member
May 3, 2016
149 posts
201 upvotes
RubberCheese wrote: As long as you are subletting at market value without making profit i wouldnt worry about it.

I.e. if you pay $1500 for a 3bdrm and rent two rooms at $500 each.... there would be no profit so no risk of tax.

I would write a receipt stating that the tenant is "contributing $x per month towards rent at 2-123 your ave" or something similar to that
Thanks. That's what I'm going to do.

Honestly next time, I'll find a place with individual leases. This year has been a headache.
Deal Fanatic
Oct 26, 2008
6402 posts
2070 upvotes
BC
PerrierWater wrote:
How should I word my signature? "Representing [Landlord]"?
Or, "on behalf of" full name and address of the Student Accom. company and their address.

The provincial tax credit that Roommate A wants and the federal requirement to declare income from rentals (the Student Accom. company's responsibility) are two quite separate things.

I doubt that CRA routinely scrutinizes that the two for corresponding amounts. And you and they have a satisfactory explanation if it ever comes to that.

The roommate just needs that piece of paper for his needs and if it doesn't satisfy the provincial requirement so be it - you have done your best.
[OP]
Jr. Member
May 3, 2016
149 posts
201 upvotes
Thank you very much! I really appreciate your help :)
Sr. Member
Jul 8, 2009
661 posts
226 upvotes
Toronto
Kiraly wrote: The landlord must report all of what he gets as rental income. You'd be reporting the same income twice for two different people if you reported any of it. Don't do that, it's not your income.
How so? If OP pays $1500 as rent to the landlord, the landlord's rental income is $1500.
The OP's two subtenants, A and B, each pay $500 to OP. OP's rental income is $1000 dollars. But, as RubberCheese said, that income is offset by the $1500 expense so there is no tax payable.

My question is: Did the two people sign anything? Or is this just a word-and-a-handshake type of deal?

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