3 Structures to Own Student Rentals for Your Kids

[@benjie.the.great266]

This content is gold

[@RealEstateTaxTips]

Glad you find it useful

[@asifa1017]

Hello Cherry, Hope all is well with you. I have a question regarding new house rebate . It has been 14 months since closing of my new house. My mother (Pensioner) was supposed to live there as her primary residence and she lived there for 2 months on closing alone, then I rented the basement out to someone for one year lease and those individuals have still been living for last 14 months along with my mother. Was my mother allowed to rent the basement and still apply for NEW home rebate? CRA is reviewing the NEw house rebate that the builder got on our behalf and asking me for a written explanation regarding planned use of property at the time i entered into the agreement of purchase. They also asked me for 3 documents prior to June 2022 to support that my relation were the first individual to occupy. (I have my mother's ontario ID, her tax return and a lawyer affidavit during closing that my mother would be primary resident of this house) If they cancel the new home rebate and ask me to repay. can I still apply for rental HST rebate? Please let me know. I would really appreciate it. Best, Asif

[@RealEstateTaxTips]

Hi Asif, sounds like you are asking a very specific tax scenario. You're welcome to reach out to our office at 416-548-4228 and our team would be happy to discuss your situation with you. Cherry

[@asifa1017]

@@RealEstateTaxTips thanks Cherry, the CRA helped me out and instead of new housing rebate, they will apply for new house rental rebate for me.

[@Colektibols]

Hello Cherry, just a quick question, is Student loan a Tax write off?

[@RealEstateTaxTips]

Interest paid on student loan is tax deductible - www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-31900-interest-paid-on-your-student-loans.html

[@cici33]

Hello Cherry. I just discovered your channel and just ordered your book and will probably set-up a consulting session soon. I just have a quick question in meantime and that is if I decided to rent out my condo as furnished, can the purchased furniture be deducted as part of rental allowance? or above rental allowance? Thank you.

[@RealEstateTaxTips]

Hi Chris, thanks for commenting here and ordering my book - and if you rent out your place furnished, you can deduct your furniture's depreciation (30% on a reduced balance basis) against your rental revenue. Not sure if I am getting your questions right. Hopefully it helps.

[@cucinasenorita5089]

Hello Ms. Cherry, Thank you for your video contents. We bought a condo (5.05% variable) for my one of my children. She shares with other students who pay rents. We are negative cashflowing on this one as the daughter is not charged rent. We are also thinking of purchasing another condo for our second daughter who goes to a different university and follow the same concept as the first. However, we still have a mortgage on our primary home, of which we are aiming to pay off in two years. Should I cash out and refinance my primary home to buy out right the second rental to avoid carrying three mortgages? Or should we have the second condo on it's mortgage and wait out the primary home to be paid out in due time- interest on this one is 1.85 fix. The goal is to have a condo for all three daughters in the future. Thank you in advance for your input.

[@RealEstateTaxTips]

Hi Cucina, while I can't really offer any investment advice and any specific tax advice, I can tell you that interest is tax deductible if the loan incurred is used to earn investment income. While interest on your second daughter's property can be deductible, provided that you are earning income, there's still a true after tax impact on cash flow. It can get even more complicated depending on who's name is on title.