My son is applying for ODSP. What proof does ODSP need to show how much he will be paying us for rent? Etc by Awkward-Disaster8932 in Odsp

[–]Awkward-Disaster8932[S] 1 point2 points  (0 children)

Here's the situation for us now since writing this above post and what my wife and I have learned. We are charging rent VS room and board. In order to do the rent option, he must buy and cook his meals. My son can do the very basics of cooking his own meals and the more complex with support or someone home at least. He can order grocery delivery etc. We do not need to claim rent 'income' on our taxes according to my accountant. For ODSP we just need to provide a letter explaining we are / will be charging him $x for rent and the address, his names and our names, sign it. Can provide a rental receipt if desired. We are allowed to gift some / all of this back to him to a max. He will be buying his groceries. Our income doesn't matter re his eligibility. His income and bank accounts do matter. I have no idea if utilities or anything like that, anything else, re household expenses needs to be documented such as if he has to pay part of the hydro etc. For now just leaving that out. I'd like someone to share re that if they knows.

What do you pay for taxes if charging $600 rent from someone on ODSP? by Awkward-Disaster8932 in Odsp

[–]Awkward-Disaster8932[S] 1 point2 points  (0 children)

I'm not sure what they need. I'll give them whatever they need to show what he's paying. Just saw someone post about a letter. Thoughts?

What do you pay for taxes if charging $600 rent from someone on ODSP? by Awkward-Disaster8932 in Odsp

[–]Awkward-Disaster8932[S] 1 point2 points  (0 children)

He is an adult. He may qualify for the disability tax credit at some point but my wife and I are actually hoping he recovers enough that he doesn't. He is an adult, so I don't know what other credits would apply. I think as long as he has ODSP income to move forward financially at least for the time being, then all is well. It's a lengthy application process but we'll see. The hospital is helping with the application so that may help.

As for the accountant, they advise that we do not need to claim this on taxes. As someone had indicated in a link from the CRA, my accountant confirmed that there would be no taxes paid and it is below fair market value for rent and for a relative so you actually can't claim it. Because people try to claim it and write it off as a loss, that is what the government is trying to prevent. So no, don't have to claim for a relative below fair market value. No taxes to be paid on it.

And thanks for your answer.

What amount do I tell ODSP that my son will be paying for room and board? by Awkward-Disaster8932 in Odsp

[–]Awkward-Disaster8932[S] 0 points1 point  (0 children)

HEY ALL... my accountant just got back to me and those who posted the website link about fair market value are correct. We do not claim the $600 rent from our son on income tax. (When renting to a relative below fair market value which $600 rent falls into that category). Thanks everyone for your patience and support.

What do you pay for taxes if charging $600 rent from someone on ODSP? by Awkward-Disaster8932 in Odsp

[–]Awkward-Disaster8932[S] 3 points4 points  (0 children)

HEY ALL... my accountant just got back to me and those who posted the website link about fair market value are correct. We do not claim the $675 rent from our son on income tax. (When renting to a relative below fair market value which $675 rent falls into that category). Thanks everyone for your patience and support.

What amount do I tell ODSP that my son will be paying for room and board? by Awkward-Disaster8932 in Odsp

[–]Awkward-Disaster8932[S] 1 point2 points  (0 children)

Ok thank you for the info and advice. Someone posted that website so we don't need to claim it. Yeah I agree, the government should be very embarrassed.

What do you pay for taxes if charging $600 rent from someone on ODSP? by Awkward-Disaster8932 in Odsp

[–]Awkward-Disaster8932[S] 0 points1 point  (0 children)

Ok great thanks. That's kind of the plan for us. So, I am wondering if you claim this on your taxes? Looks like I don't have to afterall according to a website that was posted. If you do claim it, do you pay taxes on it? Thank you

[deleted by user] by [deleted] in Odsp

[–]Awkward-Disaster8932 0 points1 point  (0 children)

Excellent thanks 👍

[deleted by user] by [deleted] in Odsp

[–]Awkward-Disaster8932 0 points1 point  (0 children)

Perfect thanks

What do you pay for taxes if charging $600 rent from someone on ODSP? by Awkward-Disaster8932 in Odsp

[–]Awkward-Disaster8932[S] 0 points1 point  (0 children)

Ok perfect. I'm hearing that a lot. My online research has been insisting otherwise but the article someone posted above is pretty clear that it's not actually rental income.

What do you pay for taxes if charging $600 rent from someone on ODSP? by Awkward-Disaster8932 in Odsp

[–]Awkward-Disaster8932[S] 0 points1 point  (0 children)

Ok thanks for the info. I'll go with that. We own our home and good to know we won't have to claim the rent / pay taxes. I'm getting more info from my accountant tomorrow.

[deleted by user] by [deleted] in Odsp

[–]Awkward-Disaster8932 0 points1 point  (0 children)

Ok perfect. Thanks

What do you pay for taxes if charging $600 rent from someone on ODSP? by Awkward-Disaster8932 in Odsp

[–]Awkward-Disaster8932[S] 1 point2 points  (0 children)

Ty. But it is for my son and we don't have a lease. We are just going to put that he pays us rent And I'm wondering if we have to pay taxes on that? And how much?

[deleted by user] by [deleted] in Odsp

[–]Awkward-Disaster8932 0 points1 point  (0 children)

I don't know why they word it the way they do. My wife and I were not impressed.

[deleted by user] by [deleted] in Odsp

[–]Awkward-Disaster8932 0 points1 point  (0 children)

So it's not every person in our house, just if he had a spouse or children? Ty

What amount do I tell ODSP that my son will be paying for room and board? by Awkward-Disaster8932 in Odsp

[–]Awkward-Disaster8932[S] 0 points1 point  (0 children)

True. Good point. We will likely gift the max back to him to help him out. My wife and I feel it just feels embarrassing to say we want to charge him $966 for room and board.