living with parents

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JaydoubleU
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living with parents

Post by JaydoubleU »

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?
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ghariton
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Re: living with parents

Post by ghariton »

Is there a lease or other formal contract? If not, I would be very surprised if CRA were to be interested.

George
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JaydoubleU
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Re: living with parents

Post by JaydoubleU »

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.
OhGreatGuru
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Re: living with parents

Post by OhGreatGuru »

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?
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
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Re: living with parents

Post by JaydoubleU »

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.
That's great, thanks.
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