Asked
If I rent a home to my ex / the father of my child for significantly less than market value (between $600-$1000 per month less than fair market value), do I have to claim rental income? I would not be claiming expenses either, just trying to cover costs like insurance and property taxes.
Clint’s answer
There are many great arguments from many great people as to why they shouldn't claim income and track expenses, but in the end the rules are made and if there are exceptions they are generally very specifically laid out...
Claim the honest revenue, claim the honest expenses and you won't land in hot water.
One thing the CRA will not agree with is cancelling out income with expenses if they are left in the dark having people "do the math for them". Like the math teacher in school wanted, we have to show our work.
Also, if they leave it up to judgement on a case by case basis, there would be no standard, and the standard states you've got to report your income, and prove the expenses used to deduct the income when asked to do so.
From Ask Clint: real questions from a Canadian public finance forum, answered by Clint Cole. Names are changed. This is general information, not advice for your situation, and rules and dollar figures may have changed since Clint answered. Terms