Question

Subleased Rental Income Expenses

Forum|Forum|3 years ago
February 13, 2023
1 reply
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I am currently renting a townhouse and decided to sublease one of the rooms given my landlord consent.

The person that wants to rent the room wants to claim the rent when doing their taxes, so I would need to declare as a income.

That said, my question is... Can I deduct part of the rent that I pay as a expense over the income I will make from the sublease?

If I pay 3k for rent myself for a house of 3 rooms and I wanted to sublease one of the rooms for 1k. Could I claim 1K that I pay for rent as an expensive.

TurboTaxSusan

Yes. As long as you are intending on making a profit by renting out your room, then you can claim your townhouse rent expense. However, if you are charging your renter less a fair market rate, then the Canada Revenue Agency (CRA) will see this as an accommodation sharing arrangement, so you not be able to claim your income or expenses.