Hello Harbajan, when it comes to your personal residence there is no write offs from income taxes unless you are claiming a portion of your home as a business use, office space, storage of goods etc... Please confirm with your accountant how much you can write off but in general only rental income properties are subject to the write off you mentioned. If you or any reader would like to discuss this further please do not hesitate to contact me at any time. Abraham Niyazi - Mortgage Agent - Lic# M08010640 - Centum One Financial Lic# 10758 - Cell: 416-993-4082 - Office: 1-866-RATE-708 http://www.centum.ca/abraham_niyazi/ I have access to 25 Banks/Lenders across Canada and 11 years experience in the industry.

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A common option for rental and vacation property today is fractional ownership. you simply own 1/4 of a property in my case a condo. the terms are sale are identical to a full condo except you only receive use of the unit for 13 weeks a year. we use about 2 weeks of 13 for personal use and we always have to designate this with our rental management company as part of the process. the main thing here is how can i claim my expenses as a loss? our income does not exceed expenses and i'd like to use the losses to deduct from our taxable earnings. can i use the full amount of items like the interest on the mortgage, the condo fees, property taxes, rental management fees, etc.? or since this is fractional property, do i have to proportion these fees. currently the way i see this, is i used the property for 2 weeks... so in turn out of 13 weeks total only 84.6% of the property was available as a rental property (11 weeks) vs. vacation property (2 weeks). any indication on the proper direction on this would be greatly appreciated. thank you. (filing taxes in canada).

Rental income and expense is reported on Form T776, Statement of Real Estate http://www.cra-arc.gc.ca/E/pbg/tf/t776/README.html Income (loss) is transferred to line 126 of your return Your method of apportioning expenses is correct. Normally. even though the property is _available_ to rent for 11/13 weeks, since you are using it as part personal use, you can only deduct the portion of expenses directly associated with contracted rental. This is to say, if it available for 11 weeks, but only rents for 7, you can only deduct 7/13 of the direct expenses for that year (utilities, insurance, mortgage interest, condo fees, taxes), plus all of management expenses, since this is an expense you would not have if you were not renting it out. However, since you have designated the use in writing to the mgmt company, all 11/13 weeks of expense are allowable. Note that "you cannot claim the expenses for renting part of your property if you have no reasonable expectation of making a profit." You can "also claim capital cost allowance (CCA) on the rented part of the property if it does not create or increase a rental loss". See Guide T4036 Rental Income http://www.cra-arc.gc.ca/E/pub/tg/t4036/README.html