dslreports logo
site
 
    All Forums Hot Topics Gallery
spc

spacer




how-to block ads


Search Topic:
uniqs
12323
share rss forum feed


StEC
Proud
Premium
join:2003-11-27
NiagaraFalls

2 edits

[Serious] Tax Question - Rent Receipt Problem

I have a bit of a dilemma when it comes to filling my tax return. I rented an apartment for 8 months but I had a slum lord major problems started creeping up as winter approached and we had major fights with the landlord and when it was apparent that he was not going to fix the major issues we were living with everyday we did a fly by night and moved out without notice.....you don't need to know all the details about that but my problem is I can not get a rent receipt from the slumlord he refused before when I asked now he is nowhere to be found.

Can I just make up my own rent receipt and put his name on it....yes I know it's forgery but what else am I supposed to do that's a big chunk of income tax return lost if I don't claim it?

I mean "IF" I get audited would Revenue Canada not be understanding when I explain what happened?
--
Stec-Net Online Community!


Laidback

join:2001-09-30
Woodstock, ON
Reviews:
·Start Communicat..

1 edit

Get copies of the cancelled cheques from the Bank? or barring that, make note in your bank statements of when said cheques cleared your account, and when the tax man asks for them, print them off online and submit those entries only with a letter of explanation. I did that for my son's rent when he was at University, and the landlord refused to issue individual receipts.
Forgot -
Revenue Canada accepted that as we supplied the landlords name and last known address with the information



koira
Keep Fighting Michael
Premium
join:2004-02-16
reply to StEC

what ever you do don't forge it

try getting in touch with revenue canada, explain and get their advice on reporting the rent. the landlord might not be reporting rental income and they might nail him based on your story so you can get even



MPAV

join:2008-01-10
Toronto, ON
reply to StEC

I wouldn't forge any documents, but if you paid by cheques I'm sure you could show that as proof. If not put it on the form that you paid X amount of money on your form and if you get audited you can refer Revenue Canada to your old landlord.

Or you might just want to call them and explain your situation, I don't think they would care that you left without giving a notice I believe this would be a provincial or municipal issue.
--
»www.mpaudiovisual.com/



StEC
Proud
Premium
join:2003-11-27
NiagaraFalls
reply to StEC

Sadly I only paid by cash so I have no paper trail

But yeah I guess I will call revenue Canada and seek advice.
--
Stec-Net Online Community!



digitalfutur
Sees More Than Shown
Premium
join:2000-07-15
BurlingtonON
kudos:2

Rent receipts are useful only for provincial tax credits if you're under a certain family income level, they have nothing to do with federal tax.

I would just go ahead and claim the rent, like you've done before. If you file over the Internet, you don't need receipts and the chances of getting asked for them are very slim if this year's tax return is not much different from last year's.

Besides, if you don't own a house and are not on the street, logically you would have had to pay someone rent; so cross the receipt bridge if you come to it.
--
All that is necessary for the triumph of evil is that good men do nothing - Edmund Burke. "Walk the Talk".



happylurk

@dsl.look.ca
reply to StEC

If you paid Ca$h only for your rent and you didn't get any receipts then aside from the fact that you must be insane, you are totally SOL...

As stated you could try declaring whatever seems correct to the best of your recollection, but if Revenue Canada ever decides to audit your return you could be in a hell of a lot of trouble...

Best thing to do in this case is not to declare the expense, eat the loss, chalk it up to a learning experience, and if you're the vindictive type, put a flea in Revenue Canada's ear about the sleazy landlord who accepts cash rent payments and doesn't issue receipts. At the very least he'll have an interesting time at HIS audit

Btw, just for emphasis sake: Paying cash for anything with no receipt = MORON



Wolfie00
My dog is an elitist
Premium
join:2005-03-12
kudos:8

I beg to differ with that last comment. You are NOT going to be in "a hell of a lot of trouble" with the CRA for telling the truth. At worst, if you are audited, and fully explain the circumstances but can't back it up with receipts, they will have no option but to disallow any deductions you might have qualified for, but that's it. You won't be hit with a penalty or go to jail, with the possible exception of interest charges, because when the facts are on your side there's always some kind of evidence that can be brought to bear -- for instance, the absence of any other housing expenditure during that period.

I do agree however that paying rent in cash is lunacy and probably indicative of tax fraud or other illegal activity on the part of the landlord. And for heaven's sake don't even THINK about forging a receipt -- here you are with the truth on your side, and you're going to commit a felony!!! For a Netfiled return, you won't need a receipt unless you're audited. But back in the days of paper returns when receipts had to be submitted, I sometimes submitted explanations in lieu of receipts that were missing, and managed just fine. It's only in an audit that, by definition, everything has to be documented and backed up.
--
"Against stupidity, the very gods themselves contend in vain" -- Friedrich Schiller



Devanchya
Smile
Premium
join:2003-12-09
Ajax, ON
reply to StEC

You can deduct rent on your taxes... never knew that.

Wonder how much I've lost over the years... I am pretty sure mortgages are not tax deductible here like in the states.



Wolfie00
My dog is an elitist
Premium
join:2005-03-12
kudos:8

said by Devanchya:

I am pretty sure mortgages are not tax deductible here like in the states.
Ya got that right, bubby!! (unless of course it's an investment property, but then you pay tax on the rental income AND on the capital gains on resale). Funny how our so-called "conservative" party has never even brought that up!
--
"Against stupidity, the very gods themselves contend in vain" -- Friedrich Schiller


DKS
Damn Kidney Stones
Premium,ExMod 2002
join:2001-03-22
Owen Sound, ON
kudos:2
reply to Devanchya

said by Devanchya:

You can deduct rent on your taxes... never knew that.

Wonder how much I've lost over the years... I am pretty sure mortgages are not tax deductible here like in the states.
Mortgages are not tax deductible in Canada unless you own the property and treat it as a business investment; declare the income from the rent and deduct the expenses like mortgage interest.
--
Need-based health care not greed-based health care.

Warez_Zealot

join:2006-04-19
Vancouver
reply to StEC

Could I deduct my rent for dorm room living at Uni? Also, can it cary over to later years if I don't use it this return??



dirtyjeffer
Anons on ignore, but not due to fear.
Premium
join:2002-02-21
London, ON
reply to StEC

the rent portion doesn't really give you a ton of money anyway...like others have posted, just claim it like you normally would, and if you do get audited, you can always cross that bridge if you have to...i wouldn't be too worried about the $100 its worth, there are much bigger fish out there the CRA is looking for...plus, it's not like you are scamming them.



happylurk

@dsl.look.ca
reply to Warez_Zealot

Rent is only used on taxes to determine a Provincial Tax Credit in some provinces and generally only applies to low incomes.

It CANNOT be carried over to another year.

If you deserved it in a previous year and didn't know enough or bother to collect it, you could always file an amended return for the year in question and collect on it that way.

As far as a dorm rental goes, I assume it's eligible if you were in a province that offers the credit when you filed taxes that year. I'd suggest checking with Revenue Canada for their exact stance on your situation.

And by the way, there's no reason to carry over that credit to another tax year. It's payable regardless of how much if ANY income you earned that particular year. Even if you earned Zero $ you could still be eligible for the credit.

Like I said, if you screwed yourself out of it in previous years, look into filing an amended return...


puzz1ed

join:2005-02-20
Markham, ON
reply to Warez_Zealot

»www.cra-arc.gc.ca/E/pub/tg/5006-···31_27307

Living in residence is not as tax advantageous. You only get to claim $25 as opposed to 20%. That being said, it works out to not a lot of money especially if your income is high.