Investor home owners looking for a tax break on losses wait for CRA’s tap on the door
There are hundreds of thousands of rented homes that do not turn a profit for their owners, but if you’re a landlord looking to the Canadian Revenue Agency for a tax break on those losses you can expect to have to answer some tough questions on your investment.
Realtor Brian Keller has been a landlord for 23 years and, after reporting losses on his 2021 tax returns relating to his rental business he received no updates until almost a year later when a six-page questionnaire arrived in the mail.
“Provide a detailed projection of how you intend to develop your rental operation into a profitable enterprise,” the letter from CRA reads, among other things.
“I can’t believe the audacity of Revenue Canada to ask me for a business plan,” Mr. Keller said. “And they want it in 20 days. This is almost an act of intimidation. …[Continue Reading]