US or Canada
QUESTION: My wife and brother own a family cottage,he wants to rent when not
in use, she does not
What tax implications if he charges no more than his basic costs. What other
pitfalls may exist
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David Ingram replies:
Well, the first pitfall I woudl worry about is lack of nooky, divorce,
expensive lawyers, etc., if you go along with her brother.
The tax pitfalls pale in comparison.
However, to be serious; if your wife and brother rent the cottage out
occassionally, they will have to file tax returns to report their respective
share of the rent. Against the rent, they will get to deduct a percentage
of any mortgage interest, property taxes, repairs and maintenance, agent
fees, and even someone like myself's professional services.
If you are really careful, I recommend it. But, be picky, really picky.
If you go to www.centa.com and click on tax guides and then rental income
you will get all sorts of "really" valuable information.
David Ingram of the CEN-TA Group
REAL ESTATE PROPERTY SPECIALISTS
US / Canada / Mexico tax and working Visa Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
.
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