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April 29, 2022
Question

Can I file a rent deduction? If so, what do I file it under?

  • April 29, 2022
  • 1 reply
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I have claimed rent in previous years but am unsure where to put the deduction, maybe moving expenses??

    1 reply

    May 1, 2022

    This is dependant on what you're trying to do. If it's just a place that you are living in, you cannot claim it as a deduction, but as a prerequisite for a benefit. If you are renting a space for your business it can be claimed under an expense.

     

    If you are claiming rent for the Trillium Benefit:

    The Trillium benefit according to the Canada Revenue Agency (CRA), combines three following credits:

    • Northern Ontario Energy Credit
    • Ontario Energy and Property Tax Credit
    • Ontario Sales Tax Credit

    You need to be eligible for one of the credits to be eligible for the Trillium Benefit. The Ontario Energy and Property Tax credit is something you can claim for the rent you pay. To be eligible you must be (One of the three):

    • 18 years of age or older
    • currently or previously married or in a common-law relationship
    • a parent who lives or previously lived with your child

    and, in 2021, at least one of the following applied to you:

    • you paid property tax for your main residence
    • you rented, and your landlord paid property tax for your main residence
    • you lived on a reserve and paid for your home energy costs
    • you lived in a public long-term care home (e.g., a seniors' home) and paid an amount for your accommodation

    To claim this on TurboTax Online, sign in, choose your tax return for the year, then:

    > On the left navigation pane, choose Provincial, then Provincial tax Credit Profile

    > You may choose any of the checkboxes that apply to you, but these are out of the scope of this post. Click Continue until you reach a page that says "You may qualify for the 2022 Ontario Trillium Benefit"

    > You will then say you are eligible for the OEPTC credit as you pay rent to your principal residence. Click Continue and follow the instructions as well as report the proper figures for your rent.

     

    If you are claiming rent as a business expense:

    According to the Canada Revenue Agency (CRA), any rent you pay for business property may be claimed as an expense on the Statement of Business or Professional Activities. Note: The rent expense related to business use of workspace in your home has to be claimed as business-use-of-home expenses.

     

    To do this on TurboTax Online, sign in and choose your tax return for the year, then:

    > On the left navigation pane, choose Income, Self Employment, then Statement of Business or Professional Activities.

    > Here you will click "edit" to the right of the business you would like to report rent to.

    > You will choose Business Expenses, and here you will be asked various questions to categorize your expenses for your business. The Category we are looking to report to is called: "Business Property Rent" (and possibly also Business Property Utilities)

    > There you will be able to report your rent figures to deduct as a business expense.

    Make sure to hit Continue so that your information is saved.

    For more information, check out: Canada Revenue Agency (CRA) - Business Expenses

    And also, Canada - Ontario Trillium Benefit

     

    Thank you for choosing TurboTax.