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