Moving to Canada maintaining mortgaged home in UK not renting can I claim deduction
#1
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Moving to Canada maintaining mortgaged home in UK not renting can I claim deduction
Moving to Canada maintaining mortgaged home in UK not renting can I claim deduction from my Canadian Income, if not if I rent house out for one month can the other eleven months be a loss or negative income??? I intend to fly home as frequently as possible as well I want to maintain my status as resident of England???
#2
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Re: Moving to Canada maintaining mortgaged home in UK not renting can I claim deducti
Moving to Canada maintaining mortgaged home in UK not renting can I claim deduction from my Canadian Income, if not if I rent house out for one month can the other eleven months be a loss or negative income??? I intend to fly home as frequently as possible as well I want to maintain my status as resident of England???
Can you give us more information about why you will be in Canada and if you have a spouse and children where they will be living?
#3
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Re: Moving to Canada maintaining mortgaged home in UK not renting can I claim deducti
I will be working in Canada full time but will get about three months a year off. I am no longer married and no one will occupy the English home when I am in Canada. I was however looking at Revenue Canada's tax forms and they say I must clain income form England including Rental Income on property. That's why I was wondering if I can claim a loss on the house because it is an expense (the Mortgage and Utilities which are used) so If I rent the house for one month that would not cover the years mortgage costs or utilities and would create a net loss or negative income. If I have to pay tax on income than surely I can claim a loss on negative income?????
#4
Re: Moving to Canada maintaining mortgaged home in UK not renting can I claim deducti
In most countries, you can only offset mortgage interest against rental income on the same property.
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Re: Moving to Canada maintaining mortgaged home in UK not renting can I claim deducti
I will be working in Canada full time but will get about three months a year off. I am no longer married and no one will occupy the English home when I am in Canada. I was however looking at Revenue Canada's tax forms and they say I must clain income form England including Rental Income on property. That's why I was wondering if I can claim a loss on the house because it is an expense (the Mortgage and Utilities which are used) so If I rent the house for one month that would not cover the years mortgage costs or utilities and would create a net loss or negative income. If I have to pay tax on income than surely I can claim a loss on negative income?????
If you have no rental income the house is classed as personal use property and you cannot claim any expenses against your Canadian income.
If you have some rental income you will probably get away with claiming the full cost of maintaining your UK home for a while. Many rentals are run at a loss in the first years and only produce taxable income as the mortgage is paid down.
There are limitations to the expenses you can claim. They must be:
a) incurred to produce taxable income and
b) be reasonable in the circumstances.
If you incur rental losses year after year someone is going to question if these expenses are actually intended or expected to ever produce taxable income. On this basis, or because they are unreasonable with regard to the income they produce, the expenses will be denied. They will most probably be denied retroactively.
Of course, you know that you have no expectation of producing taxable income from your UK house so in all good conscience you should not attempt to claim the costs of keeping it.
#6
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Re: Moving to Canada maintaining mortgaged home in UK not renting can I claim deducti
Just to point out it is VERY difficult to get buidlings insurance for empty houses in UK........................
#7
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Re: Moving to Canada maintaining mortgaged home in UK not renting can I claim deducti
Thanks for the wise advice