Claiming Property Tax and Rent Receipts on Next Tax Return

As the year is coming to a close, it is a good time to gather your paperwork and organize receipts so you aren’t rushing to do this for your next tax return in the new year.  I have been preparing income taxes over the past three seasons and while that may not be a long time in the tax preparation world, what I find amazing is the number of people that do not track their property tax or rental receipts on their income tax returns.  They do not think of claiming rent as an option.   This is an integral part of your Ontario Trillium Benefit refund that you should be taking advantage of.

The Ontario Energy and Property Tax Credit is the section that is part of the Ontario Trillium Benefit you are entitled to every year if you are a property owner or a renter.  If you don’t claim this benefit, you will get the Ontario Sales Tax Credit.   By claiming your property tax/rent, you get BOTH the Ontario Sales Tax Credit and Ontario Energy and Property Tax Credit.  This could be an extra $500-$993 per year (depending on your income level and personal situation) in your back pocket!

So you may wonder, “How much can I receive?”  “How do I qualify?” “How do I get this credit?”

How much you can receive for 2016 will be updated in the new year and you can see that benefit on the Ministry of Finance website.  For 2015, you could get

  • up to $993*if you are a non-senior ($772* to help with property taxes and $221* to help with sales tax on energy)
  • up to $1,131*if you are a senior ($910* to help with property taxes and $221* to help with sales tax on energy)
  • up to $221*if you live on a reserve or in a public long-term care home
  • $25 for the time you lived in a designated college, university or private school residence in 2014

To qualify, you need to be a resident of Ontario by the end of the tax year.  Since tax season is around the corner, you would qualify on your 2015 tax return if you live in Ontario on Dec 31st this year.  The following rules are in place as listed on the Ontario Ministry of Finance website:

  • rent or property tax for your principal residence was paid by or for you for 2015
  • you lived in a student residence
  • you lived in a long-term care home, or
  • you lived on a reserve and home energy costs were paid by or for you for your principal residence on the reserve for 2015, and
  • at the beginning of the payment month, you are:
  • a resident of Ontario, and
  • 18 years of age or older, or have or previously had a spouse or common-law partner, or are a parent who lives or previously lived with your child.

These rules and other useful links can be found directly on the ministry of finance website here

To get the credit, you apply for it on the ON-BEN form when you complete your taxes.  If you have someone preparing your taxes, they will apply for this credit for you.  Generally, they will ask for the amount of what you paid on your property tax bill.  You can bring them your yearly statement (summary) or give them the amount to input.  For renters, be sure to have your landlord give you a rent receipt, either month by month or for the whole year.  It can be a receipt book or the landlord can print off a statement summarizing what you paid him/her in 2015.  Be sure they sign and date this form.  Your tax preparer will input the total rent amount for 2015 on your behalf on the ON-BEN form.  This form is included in your general income tax package that will be sent to the CRA.  Remember, it your responsibility to gather the receipts/statements for property tax or rent and to give accurate information to your income tax preparer so that the CRA gets the correct information.

IMPORTANT NOTE:  Just like GST/HST, you can qualify for this payment EVEN if you do not owe/receive any income tax.  This is why it is so important to file your income tax every year because you don’t want to miss out on the benefits.

The deadline for filing is April 30th.  If you file late, payments may be delayed.  The Ontario Trillium benefit will show up to your bank account on the 10th of every month beginning in July of that tax year if you are to receive more than $360.  You have the option to receive it in one lump payment (For 2016 filers, you would not receive the lump payment until June of 2017.  Alternatively, if you receive less than $360, you would get a single payment in July of 2016.

Direct Deposit:  Most filers have direct deposit set up with the CRA and by 2017 this will be mandatory for all Canadian income tax filers.  Please note for quicker payment of benefits or income tax refunds, it is recommended you set up direct deposit with the CRA as opposed to traditional mailout.  See your tax preparer/accountant for details.

At Debits & Credits, we are here to help you with your tax return.  We can help with any kind of tax returns ranging from student/personal to small business/corporate.  If you have any questions about preparing your tax return this year, needing to get your taxes done or any other general tax inquiries, give us a call!  That’s what we’re here for.

We also provide other services such as accounting and bookkeeping services for businesses.  Call our number at 705-735-0022 for a no charge consultation.  Remember the idea is to grow your business, not your workload!

Similar Posts

63 Comments

  1. What if I paid rent through electronic payments? Is it best to still ask my landlord for a receipt of total rent paid?

    1. Hi Jennifer,

      Yes it is best to get a receipt that is signed and dated by the landlord with total amount indicated on the receipt. Be sure the signature is legible and you are good to go!

  2. Hi Renee,

    Based on my income, I qualify for the Ontario Property tax credit. However, I forgot to claim it for 2012-2014. Is there anything I can do about it now? Or is it too late…

    Thanks!

    1. Hi Allison,

      Yes you can.

      The instructions below are direct from the CRA website and are applicable if you forgot to apply in 2015. The same steps are used in previous years.

      Please attach to your letter or Form T1-ADJ a completed Form ON-BEN or provide information for whichever of the following apply to you:

      *a statement that indicates whether you lived in a designated Ontario university, college, or private school residence in 2015;
      *the rent paid by or for you for your principal residence in Ontario for 2015;
      *the property tax paid by or for you for your principal residence in Ontario for 2015;
      *the home energy costs paid by or for you for your principal residence on a reserve in Ontario for 2015; or
      *the accommodation costs paid by or for you for living in a public long-term care home in Ontario for 2015.
      Note
      For the last four bullets, include your supporting receipts: If you forgot to apply for the OEPTC on your 2012, 2013 or 2014 returns, you still can. Just follow the instructions above but provide the requested information for the applicable tax year.

      Please note that if you have an account setup, login into my account and follow the instructions to ‘change your return’ for the appropriate year. Alternatively, you can fill out a T1-Adjustment form and send that to the CRA.

      Hope that helps!

      1. A friend of mine was living with her son who charged her rent. He refused to provide her with rent receipts as he wasn’t reporting the income. She no longer lives with him. I helped her with her taxes and we backfiled T1adj forms for 2 years including copies of her bank statements and copies of the cheques she paid the rent with.

        ONBEN and CRA denied her claim indicating that because he was a relative, he must claim the income in order for her to claim it as rent.

        To me, this seems to be almost like the government condoning elder abuse.

        1. Hi John,

          Actually it is irrelevant whether or not the son was a relative or not when it comes to claiming income. He has to claim it as income in order for his mother or any other person to be issued a rent receipt. If he does do this, unfortunately there is nothing the mother can do to claim it as a rent expense and get that benefit.

        2. Does the son still need to report the rental income if it is below FMV? I have a similar situation in that my mom contributes to household expenses by paying for the property taxes but it doesn’t equate to a 3rd of the total household expenses.

          1. Hi Sonia,

            Please see the rules below as listed by the CRA guidelines for Rental Income T4036 publication:

            Renting below fair market value
            You can deduct your expenses only if you incur them to earn an income. In certain cases, you may ask your son or daughter, or anyone else living with you, to pay a small amount for the upkeep of your house or to cover the cost of groceries. You do not report this amount in your income, and you cannot claim rental expenses. This is a cost-sharing arrangement, so you cannot claim a rental loss.

            If you lose money because you rent a property to a person you know for less money than you would to a person you do not know, you cannot claim a rental loss. When your rental expenses are consistently more than your rental income, you may not be allowed to claim a rental loss because your rental operation is not considered to be a source of income. You can claim a rental loss if you are renting the property to a relative for the same rate as you would charge other tenants and you expect to make a profit.

  3. Kaelan Robin says:

    Hi, I was wondering if I had a sublet for my room for 4 months, could they get a property tax credit on the rent that they pay, and how would they go about doing so?

    1. Hi Kaelan,

      This sounds like a typical post secondary situation in which a student needs to sublet to another student to help absorb the costs.

      The landlord needs to write the receipt out to the tenant that occupied that space. If the landlord wrote out a rent receipt to you for the 8 months you occupied the room, then ask the landlord to write out the rent receipt for the 4 months to the name of the person that you are subletting it to.

      Likely the landlord has been notified of the person taking over the room and that is when they can arrange to get the monthly receipt or the lump sum rent receipt (entire 4 months).

      1. Hi,

        I was wondering does having a sublet effect the way you file anything? If I subletted for some of the months i was renting, should i still be including those months in my tax return?

        I get a accountant to file my tax return and i simply gave him my rent receipts, should i have specified that i had subletted for some of those months?

        1. Hello,

          If your landlord issued a receipt to your name which included the months you subletted, you claim those months as part of the rent credit (Ontario Trillium Benefit). If your subletter wishes to claim those months for the rent credit, then you cannot claim those months for rent. That would be ‘double dipping’. The subletter would claim the months they occupied and list the landlords name. If that is the case, the legal way would be for the landlord to issue you a receipt to your name only in the months that you occupied.

  4. Hi,
    I wanted to know if I didn’t file my rent for my 2011, 2012, or 2013 return, could I do this now?
    And what would I need?
    Or what would I need to do?
    Thanks

    1. Hi Louise,

      Yes you can.

      The instructions below are direct from the CRA website and are applicable if you forgot to apply in 2015. Use the same instructions for 2011, 2012 and 2013.

      Please attach to your letter or Form T1-ADJ a completed Form ON-BEN or provide information for whichever of the following apply to you:

      *a statement that indicates whether you lived in a designated Ontario university, college, or private school residence in 2015;
      *the rent paid by or for you for your principal residence in Ontario for 2015;
      *the property tax paid by or for you for your principal residence in Ontario for 2015;
      *the home energy costs paid by or for you for your principal residence on a reserve in Ontario for 2015; or
      *the accommodation costs paid by or for you for living in a public long-term care home in Ontario for 2015.
      Note
      For the last four bullets, include your supporting receipts: If you forgot to apply for the OEPTC on your 2011, 2012 or 2013 returns, you still can. Just follow the instructions above but provide the requested information for the applicable tax year.

      Please note that if you have an account setup, login into my account and follow the instructions to ‘change your return’ for the appropriate year. Alternatively, you can fill out a T1-Adjustment form and send that to the CRA.

      Hope that helps!

  5. Hi Renee,

    If I file online, how do i submit my rent receipts? Do I just keep them with me till CRA asks for them? Or do I submit them along with my Taxes( I plan to use SimpleTax for 2016)

    Thanks for your time,
    TD

    1. Hi Tyler,

      Yes you should keep your rent receipts as a backup and do not have to send them to CRA. Submit the totals on your OnBen form in your tax software as you would normally do. Keep your rent receipts in your 2016 tax folder for 7 years in case they ever ask for them.

  6. My brother and I own a home together and both live there as roommates. We pay all bills relating to the house 50/50 including property taxes. I make approximately double what he earns. I do not qualify for the Ontario Property Tax Credit, but I believe he does.

    Can he claim the entire amount of property taxes paid on our house, given that I am not claiming any of it? Or only for half which he actually paid?

    The property is registered in both our names, and the direct deposit payments to the municipality come from a joint account that is also in both our names.

    1. Hi Tom,
      As long as the property tax bill states his name, he can claim the entire amount as long as you are not claiming any.

  7. Can you claim rent if you did not switch your address over?

    1. Hi,

      Yes you can claim rent if you did not switch your address over. As long as the landlord that you paid rent to issued you a rent receipt for that tax year, you can claim that amount on your Ontario Trillium Benefit.

  8. If Iam still in a live in caregiver program, and my employer deducts a rent from my salary, and put on my T4 that I pays rent to her and Iam living out during saturdays and sundays and paying a 150 dollars a month in that place that Iam staying during the week end, if I ask for a reciepts of my 150CND, will I be able to use it for a tax refund? Thanknyou so much ? More powers to the admins..

    1. Hi Jenny,

      You can claim the rent under the Ontario Trillium Benefit for the $150 you pay on the weekends at that place. Ask them for a rent receipt. If you pay them by cheque or have a lease agreement, that can count in place of the rent receipt. The OTB is an amount you can claim as a benefit depending on your income level. It will not increase your refund but you need to report this on your taxes to get that benefit.

  9. I’m a subtenant, and was wondering who’s name I should file on my tax return. That is, is it the landlord (owner of the property) or the person subletting the room to me?

    1. Hi Ria,

      It should be the landlord’s name. They are the ones that are claiming the rental income on their tax return. To be on the safe side, ask the landlord to issue a receipt for the months you are there.

      I would confirm with the tenant that you are claiming the months in 2016 for their room and that they cannot claim your months!

  10. Hi Renee,
    My ex-husband paid our daughter’s apartment rent for her while she was a full time student attending post secondary education last year, and then for 3 months after she graduated until she found stable employment. Is he allowed to claim the rent, or is only my daughter allowed to claim the rent he paid on her behalf, for the purposes of gaining the Ontario Trillium Benefit?

    1. Hi Kim,

      Whom is it more important to claim the OTB?

      If your ex-husband paid the landlord directly and received the rent receipt direct to his name, he has to claim the rent. Your daughter cannot claim.
      If he can get the landlord to write out the rent receipt to the daughter, then your daughter can claim the OTB. Basically that becomes your ex giving money to your daughter to give to the landlord.

  11. Hi Renee,

    I stumbled upon your blog while investigating tax situations of live-at-home students and non-FMV rent payments to parent(s), and whether there are CRA considerations that are beneficial to both student and parent(s)…

    A little background before my enquiry…
    I am single Dad of 3 live-with-me children, 2 attending post secondary school and 1 in high school, all in the province of Ontario. My former spouse is not in the picture, and is not contributing to the children’s education.

    First child attends University away in same province, lives in school residence, and claims the max allowed tax credit of $25.
    Second child attends home-city University, lives at home and helps contribute to family home expenses by paying ‘rent’ of approx $1000/yr.
    Third child is under age18, and is claimed by myself as an equivalent to married dependent.
    I have the Federal and Provincial tuition tax credits transferred over to me from First & Second children, after their incomes are ‘zero-ed’, and they do not pay tax.

    Questions:
    1. Should 2nd child claim ‘rent’ paid to myself to obtain Ontario Trillium Benefit, Sales Tax Credit, and Property Tax Credit?
    2. Do I need then declare the ‘rent’ as income to CRA, (amount very below FMV), even though funds are used exclusively for family grocery expenditures?

    Thank you in advance for suggestions and enquiry answers.
    Regard, Lo

    1. Hi Lo,

      It depends if your situation is a cost sharing arrangement or you are intending to earn a reasonable profit with the rental income. Yes, your 2nd child can claim the ‘rent’ paid to yourself so they can receive the Ontario Trillium Benefit AS LONG as you are claiming the rent as rental income on your tax return to earn a reasonable profit. If you do not wish to do so, do not issue her a receipt. Rent claims between parents and children should be reported on both income tax filings with exact figures to not raise any red flags with the CRA.

      You can deduct your expenses only if you incur them to earn income. In certain cases, you may ask your son or daughter to pay a small amount for the upkeep of your house or to cover the cost of groceries. You do not report this amount in your income, and you cannot claim rental expenses. This is, in fact, a cost-sharing arrangement, so you cannot claim a rental loss. The cost-sharing arrangement is what it sounds like between you and your child. If most of the $1000/year is for groceries, then do not claim this as rental income and your child should not claim the OTB.

      If you lose money because you are renting a property to a relative for a lower rate than you would rent it to other tenants, you cannot claim a rental loss. When your rental expenses are consistently more than your rental income, you may not be allowed to claim a rental loss because your rental operation is not considered to be a source of income. However, you can claim a rental loss if you are renting the property to a relative for the same rate as you would charge other tenants and you reasonably expect to make a profit.

      Here is a the CRA link of what rental expenses you can claim:
      http://www.cra-arc.gc.ca/tx/bsnss/tpcs/rntl/bt/rprt/xpns/menu-eng.html

      You would have to determine what percentage of the space in the house the 2nd child uses and your personal portion of the expenses would be taken off your personal tax return.

      Hopefully this answers both of your questions.

  12. Sonny James says:

    When filing your yearly income taxes, when claiming rent, do you receive more in your refund, if you pay less rent per month? Example:
    My friend currently pays $800.00 per mth
    My current rent per mth is $450.00

    We are both disabled, and on ODSP, and we’re curious to who would receive the larger refund, due to claiming monthly rent? Who would receive back more on their refund? Would it be my friend, or myself, as everything we receive per month, is the same, only difference, is he’s paying more for rent, so we are both kind curious to who’s going to get the larger refund, and if anyone perhaps knows to which of us who’s getting the larger refund, it would be appreciated for the simplest of answers, please & thanks. I myself am leaning towards me, as the person who’ll be receiving the larger refund? But I’ve been known to be wrong before!! Any insight, and positive replies are welcomed!!! So thanks in advance ppl, I appreciate any help, insight, or answers!!!

    Sincerely,

    The Average Canadian taxpayer.

    1. Hi Sonny,

      Without knowing your total net income, I will make a few presumptions in that you are both receiving the same income from ODSP and any other income sources. The lower the net income, the greater your rent credit will be. Your friend would receive the higher rent credit based on higher rent expense per month. If there are other factors such as dependents living with you or your friend would then increase the rent credit as well and working income tax benefit.

      1. Sonny James says:

        So basically, at a monthly net income of $1200.00, my friend would get more back on the rent credit, seeing he’s paying higher rent, and I would receive less for my rent credit, due to my rent being lower per month, this is what you’re basically saying, correct? If correct, I thank you for your very helpful response, and thanks for your timely, prompt response as well, it’s appreciated greatly!! So again, thank you for answering my question, I definitely appreciate your help in rectifying this odd-ball tax question!! Thanks!!

        Sincerely,

        Sonny James

  13. I make $50k gross/yr – and have filed personal bankruptcy in March 2017 (bankruptcy to be completed this November); I pay $1,000/month rent. How much can I get back on my taxes if I claim my rent this year? I work/reside in Ontario.

    I might move in with my boyfriend next month but he’s not sure he wants to claim my rent as income. I want to have an idea how much I might lose out on if I can’t/don’t claim my $1,000 monthly rent. Thanks

    1. Hi Marsha,

      If you make $50k gross/yr what are your expenses? If you are self employed, you can deduct expenses to arrive at your net income. Your net income is what you are taxed on. If not, there are several deductions that could still be applied to the $50k gross that would bring that down to determine your taxable income.

      In general, if your net (taxable) income is between 40,000-50,000 you would get very little rent credit (part of Ontario Trillium Benefit) if any at all. If your taxes are filed as common law with your boyfriend and your combined income is over 50,000, there will definitely be no rent credit.

      Determine your net income and if you are below 40,000, it may be worth looking into the rent credit. It is designed to compensate low income earners for that tax year.

      Hope this helps

  14. Austin McNulty says:

    I owned a home up to June 14th 2017 at which date it was sold. I then began paying rent for an apartment for the rest of the year(Dec. 31st). Do I apply for both Ontario energy and tax credit together with the application for the Ontario senior homeowners property tax grant ( I am 69 years old ) vis.a vis. tick 6113 and 6118 plus fill in 6110 and 6112?

    1. Hi Austin,

      Yes you can click on 6113 OSHPTG and 6118 OEPTC respectively as 6118 is part of the Ontario Trillium Benefit and 6113 is part of the senior homeowners property tax grant.

      For the OEPTC, click on 6110 for rent and claim the rent you paid out in 2017 for the apartment. Add a new line and click on 6112 for property tax. Your city or township will issue you a 2017 bill showing ‘taxes paid for 2017’. Use that figure.

  15. I’m renting out a room in my condo that I live in for $600 / month, well below market value. 50 percent of the expenses (condo fees, interest, tax), far exceed the rental income.

    What impact is there on both me and my roommate if we claim VS not claim the income/expenses? Will the expense claim on my taxes be denied since I am “not expected to make a profit?”

    For reference my tenant makes less than 20k as a student and I make more than 80k.

    Thanks,

    1. Hi Chris,

      Yes it is possible your rental claim could be denied if you are showing a net loss every year. You are expected to make a slight profit or at least break even. If you claim 7200 rent per year from this tenant, try to claim 75-95% expenses as part of that and absorb the rest. This way your tenant can claim the rent receipt under the Ontario Trillium Benefit. If you do not claim, your tenant loses out on the rent benefit.

      If there is a rental agreement between you and your tenant, you should be issuing a rent receipt.

  16. Hi there.
    I will be paying rent via direct deposit to the landlord. I assume she will provide me with a receipt. My boyfriend will not be on the lease but will be living with me and paying half of the rent. He is afraid that because he isn’t paying his half to the landlord directly, he won’t be getting receipts for him to claim for his taxes. If he pays me his half of the rent, and I write out a receipt stating he has paid rent, can those receipts be accepted for him to claim for his taxes?

    1. Hi,

      These situations are where it gets tricky. Your boyfriend can only claim the rent if the landlord has written out the receipt to his name. Therefore yes, if you write out a receipt to your boyfriend to claim the rent benefit THEN you must claim the same amount as rental income on your tax return. I would evaluate if you want to do this because you cannot claim the same expenses (heat, hydro, water) if your landlord is claiming the same expenses on his/her tax return.

  17. Hi may I know the income bracket of an individual that rent can be useful and credited? And how much is the maximum amount is credited to an individual

    1. Hello,

      Generally if you make 50000 or more, you will not get the rent credit. It varies from individual to individual situation on each tax return but that is a good amount to go by.
      Maximum amounts are determined by income levels. Rent benefits normally do not exceed $1000 yearly.

  18. From the online calculators, I am ineligible for any money back from rent. Am I required to include rent on my tax form?

    1. Hi Tyler,

      No you are not required to report rent on your tax return unless it is ‘rent income’. Claiming rent is a benefit for you on the Ontario Trillium Benefit.

  19. tax question says:

    Hi there, when claiming rent paid on your taxes, if i do not have a tax recipe are the cancelled cheques good enough?

    1. Hi there,

      If there is no rent receipt provided, you can claim rent if a) there is a formal lease agreement between you and your landlord, signed by both parties, showing how much you paid monthly to your landlord or b) you have written cheques to your landlord that have been cashed by the bank. If the cheque is cashed, it will show in your bank statements which is sufficient backup. Etransfers to the landlord also qualify. If the cheques were never cashed or cancelled, this would not be good enough.

  20. Hello,

    I helped file a friends return. I accidentally put his rent he paid for school on the T1M. I know that I have to send a T1Adj to remove those expenses but I want to claim that rent on the ON BEN form. Since I am at an accounting firm, we can refile the return. Since the ON BEN does not change any of the lines of the return, will CRA pick up that change when I go to refile it?

    1. Hi Serena,

      If you refile your return submitting the information for the ONBEN, the CRA will pick up that change. There may not be a new NOA based on an ONBEN change but there will be an Ontario Trillium Benefit (OTB) notice mailed out to your friend outlining the changes.

  21. Charmaine Kissmann says:

    Will claiming OEPTC for rent paid while attending postsecondary have any impact on on the student’s status as a dependent and being able to transfer unused educational amounts to parents?

    Alternatively, can the parent claim the OEPTC if they are already claiming OEPTC for their primary residence? (i.e. can you be claiming rent for two residence at the same time?)

    1. Hi Charmaine,

      The student can claim rent from the parent as long as the parent is claiming the rent as income on their taxes. The parent should issue as a receipt. As a dependent the student can still transfer any unused tuition to the parents.

      No, the parent cannot claim the OEPTC for their portion as well as the child’s portion. The parent can only claim the property tax or rent credit on the primary residence (never two residences at the same time)

  22. Michele Mackie says:

    Hi Renee

    I recently took on the care of my Mother’s finances and did not know to apply for the Trillium Benefit when her taxes were done although she has been receiving it. I know I can apply now but my concern is that it asks for property taxes paid and she rented. I can’t see a landlord giving us that information. If she rented do I still need to find out how much property tax was paid and can I get the person who did her taxes to now file for this benefit?

    1. Hi Michele,

      You do not need to report the property taxes if you are not the landlord/owner. Since she rented, she should report the total amount paid in the calendar year to the landlord. The landlord should issue her a receipt for the amount of rent that they collected. If she wrote cheques to the landlord, add up all the cheques for that tax year and submit as part of a T1 adjustment. The person who did her taxes should be able to send in a T1 adjustment which should result in a higher OTB benefit.

  23. Hello,

    I rented to a brother and sister during 2015-2016 and the brother now wants to claim his rent on his taxes. So I gave him a receipt for the rent he paid me, as they split the rent 50/50. His sister contacted me and said the CRA is giving him a hard time and would it be possible to give him a receipt for the whole amount of the rent. Can I do that even though they paid separately each month?

    Thanks!

    1. Hi Sam,
      You would issue a receipt to both the brother and sister names on one receipt and then they would decide between themselves how much to claim from the CRA. If they wish to split the rent credit 50/50, that is between themselves.

  24. Dave Lachance says:

    We rented a house and had to pay all utilities. Would we add the total utilities paid plus the rent on line 6110?… or just the rent?

    1. Hi Dave,

      You can only claim the rent. The only time utilities can be claimed is if they are included in the rent.

  25. Hi Renee,

    I live with one roommate, both of our names are on the lease agreement that was signed by us and the landlord. The monthly rental payment comes out of my roommate’s bank account and i e-transfer him half the amount every month.

    Do i still need a receipt from the landlord or can i use the lease agreement as proof? i recently heard that an official lease agreement is not a sufficient proof for the cra.

    Thank you!

  26. I have looked online at CRA and I’m not finding an answer to what I need to know. Can I claim the extra 2 months rent that I paid to break my lease, as I moved to another city and the landlord made the offer. I paid it in December.

  27. Mister Salman says:

    Hi,
    I forgot to add rent in my 2018 tax return. I refiled it from CRA account but didn’t get OEPTC. What should I do now?

    1. Hi Mister Salman,

      You need to call the CRA at 1-800-959-8281. Ask them why did not adjust your return based on your new information for your rent. It is possible that your family income is too high or your income is too high which could be the reasons they did not give you the credit. If they wish to seek evidence, you will have to send them the rent receipts based on the instructions they give you.

  28. Sam Smith says:

    Next year would be the first time I would be looking at filing my taxes as a sole proprietor. I was going through the T2125 form and understand that I could possibly deduct a portion of my rent as my home office expense as I run this online business from home.

    My challenge is that – I have been living in an apartment for the last 2+ years (I currently live here too) where my roommate is on the lease and I just pay my roommate via cheque. There’s no written contract in place between me and my roommate, it’s just verbal agreement that I pay $x per month to him via cheque. I don’t have any receipts for the rent.

    Now – I am wondering how do I go about claiming the home office expenses as I believe if I get audited CRA would ask for some documentation.

    Any thoughts on how should I go about this? Based on what I have been reading online, it appears that the cancelled cheques I write to my roommate might suffice but again my roommate isn’t the landlord but he pays to the property management company.

    1. Hi Sam,

      Ask your roommate if you can get the Property Management Company to write you a rent receipt to your name for your portion in the tax year. You can use the rent receipt to claim the Ontario Trillium Benefit for your personal taxes-this has nothing to do with sole prop.
      If you’re running a business out of a home rental space, that is considered a shared accommodation with the roommate. You can claim the property tax under home business if you own the property. You can’t claim rent expense as part of the home office expenses as a sole prop.
      Rent expense for sole props can be claimed if you are renting an office space in a building or on someone else’s property to run your business. Usually it’s a set lease or monthly payment arrangement on paperwork.

  29. Hi,

    I live with my landlord and pay her monthly. but there’s no rent contract between us and she said she won’t write receipt to me.

    Although I have the e-transfer record to show i pay her monthly, am I still eligible to file the rent in my tax?

    Thanks!

    1. Hi Daniel,

      The short answer is you can claim the rent expense in your tax filing but if the CRA asks to see this expense, they can disallow the rent claim if you don’t provide a rent receipt.

      Landlords in Ontario are obliged to provide a rent receipt if asked for one once a payment transaction has taken place. I’ll refer you to this link. It may help if you print this off or email the landlord the rules within the tenancy act. If you are from outside Ontario, you will need to check with your local provincial landlord rules. Good luck!

Leave a Reply

Your email address will not be published. Required fields are marked *