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  • rental income

    Hello,

    I have started taking renters in my basement this year.

    I receive an 'offset' child support amount from my ex husband. We share costs including daycare and sports based upon our incomes.

    Next spring when my ex husband and I exchange financial information I understand that we look at each other's 'line 150' in order to determine our income for the purpose of child support offset calculation and for the purpose of determining what our 'proportionate' share of extraordinary expenses for the upcoming year will be.

    My line 150 will include my work income and it will also include income from renters in my basement.

    I asked my lawyer about this and she said yes I can most definitely deduct my expenses for renting in my home from line 150 but I cannot locate anything to back up her advice to me. I was hoping to see it in black and white in the event my ex husband challenges this.

    It seems to me then when I file my taxes that all my deductions go elsewhere and are not reflected on line 150. In other words my expenses will reduce my income on my income taxes but they will show up on another line on my taxes. (I think)

    Does this mean I'm screwed here and I have to claim all of it as income - or is there a clear rule out there re: calculating child support that says it can be 'line 150 less expenses'?

    My ex husband has already told me that he is able to deduct his union dues from his final income and when I researched that I found it to be true and we minus the union dues when we calculate child support.

    Can anyone point me in the right direction here?

  • #2
    I am in a similar situation. You definitely CAN deduct rental expenses before line 150.

    Basically you fill in CRA form T776 in which you list all rental income AND expenses. This produces a value which is essentially rental income minus eligible expenses... and it is THAT value which becomes a line-item on your income tax return... and that line-item is BEFORE line 150.

    This link should help you get started..

    T4036 - Rental Income - Includes Form T776

    Comment


    • #3
      This was discussed here:

      http://www.ottawadivorce.com/forum/f...ulations-5652/

      And I was able to find some information here:

      SCHEDULE I: FEDERAL CHILD SUPPORT TABLES - Children Come First: A Report to Parliament Reviewing the Provisions and Operation of the Federal Child Support Guidelines - Volume 2

      (See SECTION 11: CAPITAL COST ALLOWANCE FOR PROPERTY)

      And here:

      http://www.ey.com/Publication/vwLUAs...013-Canada.pdf

      (See page 17)

      Hope that helps.

      Comment


      • #4
        Unlikely that the OP is claiming CAPITAL COST ALLOWANCE (CCA) on their principal residence, but a percentage of other current expenses (minor repairs, utilities, mortgage interest, property tax, insurance, legal/advertising fees) can be deducted from rental income.

        Comment

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