living with parents
-
- Veteran Contributor
- Posts: 3102
- Joined: 13 Sep 2007 22:52
living with parents
Say I buy a house. Meanwhile, my elderly parents sell their house and move in with me. They "share" expenses, contributing to food and utilities. Is this contribution taxable income, like rent?
Re: living with parents
Is there a lease or other formal contract? If not, I would be very surprised if CRA were to be interested.
George
George
The juice is worth the squeeze
-
- Veteran Contributor
- Posts: 3102
- Joined: 13 Sep 2007 22:52
Re: living with parents
I see. Lease? Not sure yet....doubt it though.
I suppose this question could also be asked of adult children who live at home with elderly parents and pay rent.
I suppose this question could also be asked of adult children who live at home with elderly parents and pay rent.
-
- Veteran Contributor
- Posts: 1361
- Joined: 27 Mar 2010 16:01
Re: living with parents
Generally speaking, no. They are relatives sharing costs. (And soon you might actually be able to claim them as dependents, depending on their health and other circumstances.). You are not runnng a rental business in any expectation of profit. I expect it is unlikely you are going to be charging market rates. If you were to add up all the costs you would be allowed to deduct if it was a "rental", I expect their contribution would be less, so there is no profit to tax.JaydoubleU wrote: ↑24 Jun 2017 18:48 Say I buy a house. Meanwhile, my elderly parents sell their house and move in with me. They "share" expenses, contributing to food and utilities. Is this contribution taxable income, like rent?
-
- Veteran Contributor
- Posts: 3102
- Joined: 13 Sep 2007 22:52
Re: living with parents
That's great, thanks.Generally speaking, no. They are relatives sharing costs. (And soon you might actually be able to claim them as dependents, depending on their health and other circumstances.). You are not running a rental business in any expectation of profit. I expect it is unlikely you are going to be charging market rates. If you were to add up all the costs you would be allowed to deduct if it was a "rental", I expect their contribution would be less, so there is no profit to tax.