I live in Ontario Canada - is the RENT I am paying a deductible expense?

Question

Hi, assuming I have no business or something, just pay like $1000 a month rent. THANKS.

Answer 1

You may apply for the Ontario property tax credit. It is reported on your Ontario tax return form ON479. It is not a deductible expense but rather a family income tested credit. If you have a spouse you must include her income in the calculations. You must also have signed receipts for all the rent you are claiming. Do not send the receipts but rather keep them in case CRA ask to see them.

http://www.cra-arc.gc.ca/E/pub/tg/5006-n/5006-n-08e.html#P208_24451

http://www.cra-arc.gc.ca/E/pbg/tf/5006-tc/5006-tc-08e.pdf

Answer 2

Rent (in your case -- no business income) is claimable as a tax credit in Ontario.

You receive a credit for your rent paid -- $250 PLUS 2% of your rent paid in the year. If you are single you add $100 to this for an Ontario Sales Tax credit.

Then the good old CRA subtracts 2% of your net income over $4000. If there is anything left, you receive the credit.



There are different calculations if you are over 65 years of age.

Answer 3

I don't know about Canada, but in the US the answer would be no. Rent is no a deductible expense. We do have programs where families with low enough income can qualify for rent rebates where they get a small check annually to help cover their expenses