Does Happipad report rent payments?
Happipad does not report rent payments to Canada Revenue Agency.
Hosting with Happipad is a simple way to earn extra income while helping others in your community. The rent you receive as a host is taxable rental income. However, as a host there are many eligible expenses you can claim to help offset the cost of home ownership.
Generally, you can deduct any reasonable expense you incur to earn rental income. The two basic types of expenses include operating and capital expenses.
Operating expenses are recurring expenses required to maintain your property in the same condition.
Capital expenses provide benefit for several years, such as costs to buy or renovate/improve your property. Capital expenses are usually claimed over a period of several years as a Capital Cost.
Expenses you cannot deduct:
- Land transfer tax
- Mortgage principal
- Value of your own labour
- Total personal portion of expenses
There are many expenses you can claim against your rental income. These expenses must be pro-rated based on the amount that is used by your guest. For example, if your guest occupies 20% of your home, you can claim 30% of the relevant expenses.
- Interest on any loans for property improvements
- Administration and management (such as Happipad’s fees)
- Maintenance and repair (general)
- Property taxes
- Condo/strata fees
Note: This guide is not comprehensive and does not constitute legal or tax advice. You should consult a tax professional for advice and to ensure proper reporting of rental income and expenses.