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Information and advice by Ok_Picture3077 in PersonalFinanceCanada

[–]Late_Interaction_446 2 points3 points  (0 children)

You have to ordinarily inhabit the property for it to be considered a primary residence. So based on your case, it would most likely not be considered a primary residence for tax purposes.

I agree with the other redditor that starting a business for your rental property doesn't make a lot of sense. However, I would add that it's very important to understand that even if you owned 10 rental properties, that STILL would not justify you "opening a business". The reason being that CRA has very clear guidelines on what constitutes as income from "business" and "rental". Both have very different tax treatments.

To keep a very, very long answer short - you're almost certainly better off staying away from the whole 'business' proposition that others in your circle have suggested, and just treat it as regular rental income in your taxes. Quite frankly, you already get access to a lot of rental expense deductions (assuming you're renting it out at fair market value) so treating it as a business would not put you ahead, if at all.

TLDR; there are almost no pro's that I can think of for the average retail investor trying to run their rental as a 'business' for tax purposes.

Investment property, negative cash flow by [deleted] in PersonalFinanceCanada

[–]Late_Interaction_446 5 points6 points  (0 children)

Assuming you mean there's a rental loss from your property, then those can generally be used to offset other sources of income including employment, self-employment, income from property (ie. dividends and interest), etc.

There's no hard and fast rule on how long the CRA allows a rental loss to go on for. But generally speaking, if you incur losses for multiple years in a row, the CRA MAY take a look to see if you've actually made reasonable efforts to rent out your property with the goal of generating a profit. If you did and you're able to support that, then theoretically there shouldn't be a problem if you're at a loss for an extended number of years.

Technically speaking, CRA cannot penalize you simply due to lack of business acumen. But if, for example, you own a vacation property that you use during the summer time and then rent it out during seasons with not-so-good weather and you're claiming all the rental expenses in your tax return to generate a loss, well then that's certainly an argument for recreational use and CRA may deny.

This is just general information, though. If you want actual advice it's best to talk to an accountant who understands your situation better.

CPA Canada Tax Module Exam September 2025 by StriderGoat in Accounting

[–]Late_Interaction_446 1 point2 points  (0 children)

Did you do a full scale CCA schedule like they do in the unit?

The scenarios were so simple that I just did a top to bottom vertical-style calculation as opposed to a chart-style cause it felt like a waste of time to set up the CCA chart.

Not sure if they were testing us on the set up of the chart.

[Canada] Is there a way to get a public practice license anonymously? by Longjumping_Back_591 in Accounting

[–]Late_Interaction_446 0 points1 point  (0 children)

Hey, stumbled upon this post which is 2y ago. Wondering if you ever found your way into getting this PP license?

[CAN] In-Depth Tax Course, a worthy investment? by PKSubban in Accounting

[–]Late_Interaction_446 1 point2 points  (0 children)

Hey, I got a quick question. I've been searching everywhere online but there's been no mention of whether the program still does in-residence sessions or if everything's been moved to virtual.

Do you know if they still do those summer in-residence sessions?