Tricky matrimonial hom/rental questions

[Carnut]

I have been told to go to an accountant to see what the NET income from the basement rental is. While gathering mortgage interest payments and hydro bills, two things occurred to me.

1- When the house is sold will it now have "capital gains" tax, or a loss of capital cost allowance? I don't believe the house will bring as much as we bought it for to be honest! Or a loss of "personal residence exemption"?
2- My ex received 950 a month from her first family member for two years, I am sure she never claimed the income. I know I didn't. Will that come back to bite one of us in court? It's undeclared income. Cheques were in her name only, but if she can stick it to me somehow she will and I would like to know before hand! lol

[dinkyface]

As long as you didn't claim any CCA expenses, didn't do major reno to turn bsmt into rental, and claimed a small portion (under50%) of home's current expenses against rental income, and you lived there, then no problem- no capital gains tax. Google cra principal residence exemption renting CCA.

Family court judges don't care about tax cheating. Renting at below market rents to family members is not taxable. Ex's can try to snitch directly to cra though.

[arabian]

You have lots of terminology that you can easily look up on the internet or pay an accountant to explain to you. Your choice.

A quick scan on Google (which you should learn to do):

Rental income Line 126 - Net Line 160 - Gross

Capital Cost Allowance (CCA) is the means by which Canadian businesses may claim depreciation expense for calculating taxable income under the Income Tax Act (Canada). Similar allowances are in effect for calculating taxable income for provincial purposes.
Capital Cost Allowance - Wikipedia, the free encyclopedia
en.wikipedia.org/wiki/Capital_Cost_Allowance

Calculating and reporting your capital gains and losses


Automobile and motor vehicle benefits

I'd focus on getting your income taxes up-to-date. You will likely need your past 3 returns and Notices of Assessments in the not too distant future.

[Carnut]

You have lots of terminology that you can easily look up on the internet or pay an accountant to explain to you. Your choice.

A quick scan on Google (which you should learn to do):

Rental income Line 126 - Net Line 160 - Gross

Capital Cost Allowance (CCA) is the means by which Canadian businesses may claim depreciation expense for calculating taxable income under the Income Tax Act (Canada). Similar allowances are in effect for calculating taxable income for provincial purposes.
Capital Cost Allowance - Wikipedia, the free encyclopedia
en.wikipedia.org/wiki/Capital_Cost_Allowance

Calculating and reporting your capital gains and losses


Automobile and motor vehicle benefits

I'd focus on getting your income taxes up-to-date. You will likely need your past 3 returns and Notices of Assessments in the not too distant future.

Already submitted my last three years filed notices of assessments, I downloaded them off CRA.
I googled and got conflicting answers. One site says no worries under 50% of the house being rented, another site claims even under 50% I will be looking at a loss of personal tax exemption. Depends which links are chosen.
I still remember here on this forum, when many were sure matrimonial home value was at date of separation, I have since learned that is probably NOT the case.
I even had incorrect direct legal advice from a lawyer. I guess it's a case of different "interpretations"..?

[dinkyface]

What expenses did you claim? (utils? mortgage interest? property tax? home insurance? general upkeep/repairs?)

What % did you claim?

Did you claim expenses such as new roof or other major reno, or appliances?

[Carnut]

What expenses did you claim? (utils? mortgage interest? property tax? home insurance? general upkeep/repairs?)

What % did you claim?

Did you claim expenses such as new roof or other major reno, or appliances?

I'm just doing it now. I have utility bill, mortgage interest printouts, property tax statements, home insurance, I also have internet/cable which is included in the rent. I have had minimal repairs and no renovations. I'm about to take to an accountant, as I'm not a tax whiz!

[dinkyface]

Ah, so you have never claimed this rental income!

I thought you were concerned that your past rental expense claims might trigger taxation on capital gains (and reclaiming of CCA) when you sold the house. Nevermind...