Renting your basement? CRA owes you money back. 1. Calculate your deduction percentage by dividing your basement’s square footage by your total home square footage — for most Canadian suites that lands between 25% and 40%, and that same percentage applies to property taxes, utilities, and insurance. → 25–40% 2. You can deduct mortgage interest — not principal — as part of your rental expenses, and at a 33.3% square footage ratio that works out to $3,168 per year in deductible interest on Form T776. → $3,168/year 3. Repairs that restore something to its original condition — like fixing a leaky faucet or patching drywall — are fully deductible the year you pay them, but major upgrades like a new roof must be spread out over time using Capital Cost Allowance. 4. Keep every receipt for at least six years — CRA can audit any deduction you claim, and your net rental income after deductions can be as low as $7,600 once all eligible expenses are applied. → 6 years Full breakdown with every line number at the link in bio 🌐 getwealthy.blog #canadafinance #personalfinance #canadianmoneytalk #moneytips #canada
Certified Financial Planner (CFP) and Chartered Investment Manager (CIM) with over 17 years of experience in Canadian personal finance. Spent 10+ years at one of Canada's Big Five banks, the last 7 focused exclusively on high-net-worth clients. Every guide is written with the same depth I bring to real client work — Canada-specific, CRA-verified, and always free.