Question

Should i enter monies received on a rent to purchase agreement as income?

Forum|Forum|3 years ago
January 30, 2023
1 reply
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do I report as income or sale of principal residence?

It depends. If you are renting to someone and giving them an option to purchase, then there is no sale until they take that option. But if you have an agreement/contract that specifically says they are going to become the owners of the house, then you have a sale.

Either way, you should contact the Canada Revenue Agency at 1-800-959-8281 to verify how you need to report this transaction.