If a person is living at home with their parents and paying rent, is it tax deductible?

Question

The question kinda speaks for itself...

Answer 1

I would think not. They would need to be issuing you receipts for the amount you are paying. Certainly not if you are renting the space for less than its fair market value. Also, if they are claiming you as a dependant, or if they are collecting the Child Tax Benefits for you, you would not be able to make the claim anyway.

As for the question on whether your parents would have to include the amount in their income: when renting to a family member and the rent is;

fair market value (yes),

less than fair market value (no).

Answer 2

Why would it be tax deductible?  It's just like you were paying rent elsewhere.

Answer 3

I should hope not.  You're already probably getting significantly lower rent than most people anyway.  

Answer 4

No! But your parents might have to claim it as "added income".

Answer 5

Rent, regardless of to whom it is paid, is never tax deductible.

Answer 6

The rent is not tax deductible.  However, the rental or property tax credit may be claimed in the province one lives in. For example, in Ontario:

You can claim the property tax credit if all of the following conditions apply:

· you were a resident of Ontario on December 31, and

· rent or property tax on a principal residence (as defined on page 3) was paid by or for you in the year, and

· you were 16 or older on December 31.

Individuals aged 16 to 18 not claimed as dependants, or dependent children aged 16 to 18 not living with you on December 31 of the taxation year, may claim their own property and sales tax credits, if otherwise eligible. However, individuals cannot claim a property or sales tax credit if they were under the age of 19 on December 31 and they lived with someone who received a Canada Child Tax Benefit payment for them in the tax year. http://www.rev.gov.on.ca/english/bulleti...

If you claim the tax credit, your parents need to report the amount as income on their tax returns.

Answer 7

no... but their parents may need to claim income