If, for whatever reason, you decide to generate some rental income by renting out part or all of your personal residence, you should be aware of the potential tax implications. What may seem like a simple decision could trigger a few unexpected surprises. Before you decide to rent out your residence, you should become familiar with the change-of-use tax rules, as they may limit your entitlement to the primary residence exemption.
For example, a change of use could trigger a capital gain if the market value is higher than the acquisition cost. Since the property is usually the family home, if you designate it as your primary residence, the gain could be exempt.
For more information on the tax impacts of renting out your residence, read the full article online!
Sylvain Moreau is a Tax Partner and columnist for the Argent – Dans vos poches column in the Journal de Montréal and Journal de Québec, Québecor’s two major newspapers.
20 Jun 2017 | Written by :