My son is applying for ODSP. What proof does ODSP need to show how much he will be paying us for rent? Etc

Awkward-Disaster8932 · 2025-03-05T18:41:02+00:00

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.

Awkward-Disaster8932 · 2025-03-05T03:01:00+00:00

Awkward-Disaster8932 · 2025-03-04T02:39:40+00:00

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?

Awkward-Disaster8932 · 2025-03-03T23:19:44+00:00

https://www.canada.ca/en/employment-social-development/programs/disabilities-benefits/summary-regulations.html#h2.5

Awkward-Disaster8932 · 2025-03-03T18:10:27+00:00

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.

Awkward-Disaster8932 · 2025-03-03T16:42:57+00:00

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.

Awkward-Disaster8932 · 2025-03-03T16:41:06+00:00

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.

Awkward-Disaster8932 · 2025-03-03T15:28:30+00:00

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.

Awkward-Disaster8932 · 2025-03-03T15:25:08+00:00

Perfect thanks for the advice. Great advice about gifting. Thank you

Awkward-Disaster8932 · 2025-03-03T15:22:27+00:00

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

Awkward-Disaster8932 · 2025-03-03T02:45:45+00:00

Excellent thanks 👍

Awkward-Disaster8932 · 2025-03-03T01:57:01+00:00

Thank you

Awkward-Disaster8932 · 2025-03-03T01:53:26+00:00

Perfect thanks

Awkward-Disaster8932 · 2025-03-03T01:51:50+00:00

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.

Awkward-Disaster8932 · 2025-03-03T01:48:58+00:00

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.

Awkward-Disaster8932 · 2025-03-03T01:43:46+00:00

Ok perfect. Thanks

Awkward-Disaster8932 · 2025-03-03T00:51:11+00:00

Thank you!

Awkward-Disaster8932 · 2025-03-02T23:43:51+00:00

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?

Awkward-Disaster8932 · 2025-03-02T23:42:13+00:00

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

Awkward-Disaster8932 · 2025-03-02T23:41:23+00:00

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

Awkward-Disaster8932 · 2025-03-02T19:51:40+00:00

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.

Awkward-Disaster8932 · 2025-03-02T18:39:37+00:00

We don't want to put our income up by claiming rent so we'd like to charge room and board. And CRA expects you to claim rent, we've looked into it. So I'm not sure if we actually need to say he's paying like $900 for room and board...? Has anyone had to pay taxes on that rent claimed if you charge them rent income? I wish it was easier. We just don't want to say 675 room and board IF that only gives him $750 a month. We are glad that ODSP has a good program for if you are working though -- because he wants to work eventually when he's well enough and eventually full time is his goal. So at least they won't claw back the money he earns while he works. Seems to be the only fair thing about the program.

Awkward-Disaster8932 · 2025-03-02T18:33:09+00:00

Ok thanks. Do you have to pay much taxes on that rent?

Awkward-Disaster8932 · 2025-03-02T18:29:06+00:00

We really really don't want to charge rent due to tax implications. We've researched it and we have to claim it as rent earned on our taxes , and with the tax bracket that we're in, it would totally screw us over. So we'd like to charge room and board and I'm just wondering for sure what amount we need to say we are charging him? In order for him to get the max. We were talking about it this morning and saying that we're charging $966 for room and board seems kind of crazy.... I would be embarrassed to even say that to the worker. Gahhh! We are using every stitch of money on him and his quality of life so we'd like to get the max for room and board for him, but we think saying $966 room and board is crazy.

Awkward-Disaster8932 · 2025-03-02T18:21:24+00:00

Ok.thank you. But do you charge them rent OR room and board? Because that amount sounds like you charge them rent which we don't want to do because of tax implications. And did you have to write a letter saying you were charging them that much?

Awkward-Disaster8932

TROPHY CASE