As a Canadian, renting a property is a common choice for many people. Whether you rent an apartment or a house, you may be wondering if you can claim your rent on your taxes. The answer is yes, you can! Here’s what you need to know about claiming rent on your taxes in Canada.
Who can claim rent on taxes?
Firstly, it’s important to note that not everyone is eligible to claim rent on their taxes. The following conditions must be met:
- You must have paid rent for the tax year you are claiming. You cannot claim rent paid in advance for future years.
- You must not have lived in a home owned by you or your spouse or common-law partner during the tax year.
- You must not have received any housing benefits from your employer for the tax year.
If you meet these conditions, you can claim your rent on your taxes.
How to claim rent on taxes?
To claim rent on your taxes, you need to fill out the “Ontario Energy and Property Tax Credit” section of your tax return. This credit is available to all provinces and territories in Canada, not just Ontario.
You’ll need to provide the following information:
- Your landlord’s name and address.
- The amount of rent you paid during the tax year.
- The dates you rented the property.
- The number of people who lived in the property with you during the tax year.
You can claim up to $1,114 for each adult living in the rental property, plus an additional $175 for each child under 18 years of age. The total credit cannot exceed the amount of rent paid for the tax year.
Keep in mind that if you share a rental property with others, you may need to split the credit between you. For example, if you and your partner both live in a rental property and you both pay rent, you will need to split the credit.
What if you’re self-employed?
If you’re self-employed and you use a portion of your rental property for business purposes, you may be able to claim a portion of your rent as a business expense. However, you must be able to prove that the portion of the property you’re claiming as a business expense is used exclusively for business purposes.
It’s also important to note that claiming a portion of your rent as a business expense may affect your ability to claim the Ontario Energy and Property Tax Credit. You may want to speak with a tax professional to determine the best course of action for your specific situation.
Claiming rent on your taxes in Canada is a straightforward process if you meet the eligibility criteria. Be sure to keep accurate records of your rent payments and provide the required information when filing your tax return. If you have any questions or concerns, don’t hesitate to reach out to a tax professional for advice.