I am seriously thinking to rent out my condo townhouse. Is there any tax benefit for doing so? I still have some line of credit to pay on it (around $75k). I do pay condo fee every month. If I rent out, would there be some write off such as property tax, condo fee, etc? In the end I dont want to lose any money on it by paying more income tax on the rent.
DIO
Yes you can write off a portion of the interest, management fee, utilities etc. etc. - but ultimately, you cannot create a loss from rental property to be adjusted against your other income (unless you were running it as a business).
So the renting out, from taxation point of view will either create or keep it same, but not reduce your taxable income.
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Thanks Chandresh. U r right. I played with some nos and either it is flat or not much savings. Only aggrevation if I get a wrong tenent. We will sell it off.
DIO
Hi Chandresh,
I agree with you , at the end of the day very little income.
But just wanted to know how people do the business of renting.
I know one person has 5 condos and he is renting all.
He has a permenanent job and he does renting as a side business.
Question is how he is getting mortgages & how much taxes he has to pay!
If you are getting rent of $1000/month and your P&I &Taxes are around $600/month then certainly you have to pay taxes on $400.
I am still trying to understand tax & mortgage system in Canada.
Hope you can advise.
Thanks
Kam,
I am not able to comprehend your question. Are you asking how someone can make money as a business of renting out, or are you asking how one does not pay taxes on renting out?
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Quote:
Orginally posted by kam64
I agree with you , at the end of the day very little income.
But just wanted to know how people do the business of renting.
I know one person has 5 condos and he is renting all.
He has a permenanent job and he does renting as a side business.
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Hi Chandreshbhai,
You are right I was asking both questions.
I got partial reply from Amit, I am thinking to invest as a rental property.
Thanks,
Kam
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