I am seeking clarity on this issue If Father, Mother and Son own a principal home with an equal share each. Is it possible that they declare the income equally, but the person with a higher income can claim all the expenses?
According to the client, he called CRA, and they suggested he claim all the expenses on his return.
I understand that they prepare the T776 with income and expenses and then claim net income/loss equally according to their share in the property.
Oh my goodness!! You’re not really considering this, are you??
3 Likes
“own a principal home”
.
.
Maybe they need to go to a country where a “principal home” is a thing.
.
.
.
Clarity would be obtained by the Professional Accountant requiring the necessary documentation of purchase documents etc from the three clients in the information gathering stage, before trying to second-guess how the end-result in a reported tax return may or may not turn out… Since there is no data to support any of the wild ramblings of these three clients
.
.
.
“According to the client, he called CRA, and they suggested”…
.
Any excuse that begins with that means that the client should be sending his documents to that CRA representative and asking that CRA representative to prepare his tax return…
1 Like
very unlikely
1 Like
I forgot to mention that they are renting a portion of the house (Basement suite).
I suppose the good thing is the clients will no longer need to wait on hold for 2 hours for a CRA agent to pick up their phone and answer these kinds of questions. Next week the clients should be able to head on over to the picket line and have their pick of agents to ask. There should be all kinds of them available. 
4 Likes
Depends how the "co-owner"agreement is made up. Income and expenses could be attributed to how the agreement is made. It should not change from year to year unless that’s also provided for.
LOL.
People sure come up with “interesting” queries and/or suggestions.