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Legal Ease
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Category: Canada Tax
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Experience:  Lawyer
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My ex husband rents out s home (formerly OUR home). The rent

Customer Question

My ex husband rents out his home (formerly OUR home). The rent he receives does NOT cover the mortgage on the house. Is this still considered "income" in the eyes of Revenue Canada?Thank you for your time.
Submitted: 1 year ago.
Category: Canada Tax
Expert:  ulysses101 replied 1 year ago.

Hello, thank you for the question.

Yes, rental income is still taxable income. Of course, that allows certain allowable deductions as well to offset it, including mortgage interest depending on the circumstances.

More importantly, if the home is still jointly in your names then there's a strong argument that you're entitled to half of this rent. You say he's your ex husband. Have you been separated or divorced for long? Are you still on title to the home, and the mortgage? Have the property division issues been sorted out?

Also, what province are you in?

Customer: replied 1 year ago.
We are in BC, and yes, have been divorced for approximately 6 years - all assets have been divided.Currently we are arguing child support in court. He's opened a new business under his girlfriends name. Although I've taken care of the details for that, in calculations his income, he insists that the rent for the house is not considered actual "income" because it doesn't even cover the mortgage. I also noticed that this was not factored in on his tax return.. Thanks for your help :). Lisa
Expert:  Legal Ease replied 1 year ago.

The rental income is most assuredly counted as income for support purposes.

It doesn't matter whether it covers the mortgage or not. Debts have no relevance when it comes to the consideration of income for child support purposes.

Let me know if you need any further clarification.