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Level 3

Cottage Rental Income and Expenses

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.

4 Replies
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Level 7

Cottage Rental Income and Expenses

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

 

Level 3

Cottage Rental Income and Expenses

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

Level 7

Cottage Rental Income and Expenses

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

Level 7

Cottage Rental Income and Expenses

You can ask the same question using the Canadian equivalent here

 

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