Northern living allowance, basement suites, and the CRA

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Northern living allowance, basement suites, and the CRA

Edit as this is largely resolved.
Last edited by Tropics on Fri Nov 28, 2014 5:46 pm, edited 1 time in total.
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Northern living allowance, basement suites, and the CRA

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Re: Northern living allowance, basement suites, and the CRA

Unread postby MacDaddy » Tue Nov 25, 2014 3:27 pm

While I am not an accountant I am guessing that the problem is the landlord has claimed the additional residency amount instead of just the basic residency amount. If this is the case then I could file an appeal based on the fact that you did not agree to allow the landlord to claim the additional deduction which caused you to be denied the basic amount PLUS any travel amounts you could qualify for. http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... y-eng.html

After that if CRA doesn't budge I would consider taking it to the Landlord and Tenant Advisory board as he/she has essentially stolen your tax deduction. http://www.woodbuffalo.ab.ca/page1342.aspx

Since we are thinking about the landlord as having stolen your tax deduction how about giving the RCMP a call and filing a fraud/theft complaint? If CRA doesn't budge on your claim perhaps an active incident number from the RCMP could help change their mind.
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Re: Northern living allowance, basement suites, and the CRA

Unread postby Tropics » Tue Nov 25, 2014 3:42 pm

Edit as this is largely resolved.
Last edited by Tropics on Fri Nov 28, 2014 5:47 pm, edited 1 time in total.
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Re: Northern living allowance, basement suites, and the CRA

Unread postby Yossarian » Tue Nov 25, 2014 6:08 pm

The landlord has a choice on how to claim. They can claim an entire household amount or claim independently allowing each individual to claim. The whole household amount is higher then an individual's claim. Although the total amount of the write offs are higher if individually claimed.
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Re: Northern living allowance, basement suites, and the CRA

Unread postby Duffer » Wed Nov 26, 2014 9:57 am

Yeah, i have decided not to mess around with it anymore myself. I am contacting a tax lawyer tomorrow. There is absolutely no way in the writing of the Northern Living Allowance guidelines that it allows the CRA to revoke the deductions because you spent $27,000 renting a private suite.

The CRA can deal with my lawyer now.


Unfortunately the lawyer's fee will probably eat up all or most of any tax saving you'll experience if you are successful.
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Re: Northern living allowance, basement suites, and the CRA

Unread postby Tropics » Wed Nov 26, 2014 10:07 am

Edit as this is largely resolved.
Last edited by Tropics on Fri Nov 28, 2014 5:48 pm, edited 1 time in total.
Tropics
 
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Re: Northern living allowance, basement suites, and the CRA

Unread postby MacDaddy » Wed Nov 26, 2014 11:20 am

Do keep us posted on how you make out. I really want to see some of these greedy landlords hit in the wallet since the municipality is too heavily influenced by these people do do anything. They are the reason behind the ridiculous state of the real estate market. As I have said before, when you can tell how many "mortgage helper" rooms a house has just by the asking price something is wrong.
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Re: Northern living allowance, basement suites, and the CRA

Unread postby icu » Wed Nov 26, 2014 5:26 pm

Hi - are you in a legally rented suite that meets the CRA residency requirements? Here is a conversation from this site http://www.mnp.ca/en/media-centre/blog/ ... -deduction which discusses rental accommodations:

What was the basis for the denial of NRD by the CRA? Did they specify in the letter you received? I have a feeling this may be a CRA interpretation of your rented space being totally independent of the owner. If CRA hasn't specified in the letter the reason for denial, try calling and see if you can get specifics.

"Monday, March 04, 2013 - 12:00PM GMT | joseph chacko
HI I have rented my basement(legally devoloped basement for renting purpose) and my tenant would like to claim both basic and additional amount. since it is a seprate dwelling unit,can we both claim for basic and additional amount? Thank you, Joseph

Tuesday, March 05, 2013 - 01:05PM GMT | Kim Drever
Hi Joseph - If your basement is a legally developed basement apartment with separate address, separate utilities, etc., it would be considered a separate dwelling, and each of you and your tenant would be able to claim the basic and the enhanced portion of the Northern Residence Deduction. However, if you are on the same utility meter and have the same address, the CRA will likely question it. Your tenant would need to show utility bills, etc in their name if CRA questions their Northern Residence Deduction. Regards, Kim"
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Re: Northern living allowance, basement suites, and the CRA

Unread postby icu » Wed Nov 26, 2014 5:30 pm

Also, your landlord should be including your rent as income on his/her tax return.
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Re: Northern living allowance, basement suites, and the CRA

Unread postby Tropics » Fri Nov 28, 2014 11:51 am

I think I have sorted out the error on the CRA's part and after a phone call with them I now have to get a online access thing for the Revenue Canada website to input the information for their mistake and have it corrected. I will not get the whole deduction including the additional amount but I will get the basic amount for the time in the basement suite and the full amount including the additional for my time prior to that as the sole resident in a 1-bedroom condo I rented.

All should work out from here it looks like.
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