Cottage Rental Income and Expenses

[Waynepcox]

Hi all,

I rented out my cottage for the first time in the 2017 tax year.  I have two questions. 

1.  How much of my expenses can I claim.  All of the examples I see of rental income and expenses are when people are renting out a percentage of their home, therefore they can claim the percentage of the expenses based on the percentage of the home.  I am renting out my entire cottage, but not all the time.  Can I claim the amount of expenses based on how often the cottage was AVAILABLE to be rented?  i.e. I used the cottage about 12% of the year.  The rest of the time it was available.  Can I claim 88% of the expenses. 

2.  Is it ok for my expenses to be greater than my income?  Is there a limit to how much rental loss I can incur?

Thanks,

Wayne.

[Rick_123456]

This link will help you understand your rental situation more thoroughly and also the tax consequence.

https://turbotax.intuit.com/tax-tips/rental-property/real-estate-tax-and-rental-property/L3e09vT71

[Waynepcox]

This is US tax law, correct?  Do you have the same information for Canada?

[Rick_123456]

This is for US.  Canadian rules are likely similar but do not fall under the information contained in this link

[Rick_123456]

You can ask the same question using the Canadian equivalent here

https://turbotax.community.intuit.ca/tax-help