Mortgage Helper | The reality
Tax on Suite Income
The rules here are real, consequential, and specific to your circumstances, which is exactly why this page names sources instead of doing your arithmetic.
The short answer
Rent from a suite is taxable income and must be reported. Expenses may offset it under rules the Canada Revenue Agency sets, and renting part of your principal residence can affect its tax treatment. Get this from the CRA guidance and an accountant, not from a real estate site.
What is clear
Rental income is income and it gets reported. That much is not in doubt and it is not affected by whether the suite is legal or whether the tenant is a family member paying below market rent.
Certain expenses can offset that income. Which ones, and in what proportion when the suite is part of your own home, is governed by CRA rules rather than by common sense.
Where it gets specific to you
Renting part of your principal residence can affect how the principal residence exemption applies. The details depend on how much of the home is rented, whether structural changes were made, and how the arrangement is characterised.
That is genuinely a question for an accountant who can see your situation, and it is the sort of thing that is expensive to get wrong quietly over several years.
Why there is no calculator here
Because a calculator would imply a level of certainty this page cannot honestly offer, and the cost of being wrong lands on you rather than on us.
The CRA publishes guidance on rental income and on the principal residence exemption. Start there, then take it to someone who can apply it to your situation.
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Common questions
Do I have to declare rent from my suite?
Yes. Rental income is income and must be reported, regardless of whether the suite is legal or whether the tenant is a family member paying below market rent.
Can I deduct expenses against the rent?
Certain expenses can offset rental income, and when the suite is part of your own home the proportion is governed by CRA rules rather than by what seems reasonable. Read their guidance and confirm the treatment with an accountant.
Does renting a suite affect my principal residence exemption?
It can, and how depends on how much of the home is rented, whether structural changes were made, and how the arrangement is characterised. This is a question for an accountant who can see your circumstances.
Where these figures come from
- Canada Revenue Agency, GST/HST new housing rebate
GST applies to new homes. The rebate reduces it on qualifying purchases.
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- BC Residential Tenancy Branch
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Find homes with a suite
Every figure in this hub comes from listings you can open. Search the full set and combine a suite with price, bedrooms, parking, and distance to a station.