Rent & ODSP

[Karin]

I like to move out of Scarboro. My brother's tenants have given
notice to move. . I am thinking of renting part of my brother's house.
He works out of town and is only at his house once or twice a year for
a month. Other ODSP recipients cautioned me that I may run into
problems with ODSP. I don't like complications but I have the
opportunity to move. Does anyone know if I could run into a problem
renting from a relative?

[abrowne]

Karin,

I haven't seen problems with people renting from a relative; however,

you actually have to prove you are paying rent at a market level (maybe

your total shelter amount of ODSP), and have your brother sign a rental

agreement with you. That way, they won't give you the boarder runaround.

Also, make sure in this agreement it is stated that you are on your own

with respect to food and so forth.

A

Karin <tauru...@hotmail.com> wrote:

Other ODSP recipients cautioned me that I may run into
problems with ODSP. I don't like complications but I have the
opportunity to move. Does anyone know if I could run into a problem
renting from a relative?

---

Yahoo! Photos – Showcase holiday pictures in hardcover
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[Patricia Duck]

I think it is better to say you are co-inhabiting not sharing the house.

Pat

[Patricia Duck]

As long as you get a letter from your brother saying how much your shelter
costs are I think that is
alright.

Pat
----- Original Message -----
From: "Karin" <tauru...@hotmail.com>
To: "ODSP Fireside" <odspfi...@googlegroups.com>
Sent: Sunday, January 08, 2006 11:08 PM
Subject: Reply: Rent & ODSP

>

[Dawn]

Hi Karin I do know that if you rent from your brother you have to draw up a rental agrrement with him. State that you will be pay rent hydro, water and any expenses covered by your housing allowance.  Try to make the agreement favourable to both you and your brother as he will have to declare income rental on his income taxes.  Maybe Angela can help you with that?

[normanbarrett]

Karin wrote:
Does anyone know if I could run into a problem
> renting from a relative?

Hi Karin,

I have been renting from a relative the entire time on ODSP with no
problems. Sometimes a move can really lift your spirits. It did for me.
I say go for it. Good luck in '06 Karin!

Norman

[corrinna]

Isn;t it interesting that , given the opportunity for a decent living arrangement at decent rent,

causes so much headaches for most? This IS the help from friends and relatives the Gov't says

we in need should ask/expect/get? But then, if we do.. BAM there they are to squash it... Like the 20

dollar loan from family to buy bread, milk, lunch food, they would deduct as income, though the Gov't

instills in the public that we have this to depend on, and we should ask for..

 

Corr

[mspep...@cogeco.ca]

i live with my parents and I pay them rent
it is a small apartment upstairs
I have no problems at all

Original Message:
-----------------
From: normanbarrett norman...@porchlight.ca
Date: Mon, 09 Jan 2006 07:44:36 -0800
To: odspfi...@googlegroups.com

Subject: Reply: Re: Rent & ODSP

Karin wrote:
Does anyone know if I could run into a problem
> renting from a relative?

Hi Karin,

I have been renting from a relative the entire time on ODSP with no
problems. Sometimes a move can really lift your spirits. It did for me.
I say go for it. Good luck in '06 Karin!

Norman

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[mspep...@cogeco.ca]

if you do not claim the rent rebate on your income tax then your brother
will not have to declare the income from you paying rent on his income tax
that is what we do here.. I do not claim the rent rebate so my dad does not
have to declare it
it states in in the rules...on your income tax form
if you pay rent to a relative and claim rent rebate then your relative has
to declare it as income
but if you do not delcare it then the relative your paying it to does not
have to declare it
is tit for tat really

Original Message:
-----------------
From: Dawn doll...@gmail.com
Date: Mon, 9 Jan 2006 11:43:29 -0500

To: odspfi...@googlegroups.com
Subject: Reply: Re: Rent & ODSP

Hi Karin I do know that if you rent from your brother you have to draw up a
rental agrrement with him. State that you will be pay rent hydro, water and
any expenses covered by your housing allowance. Try to make the agreement
favourable to both you and your brother as he will have to declare income
rental on his income taxes. Maybe Angela can help you with that?

On 1/8/06, Karin <tauru...@hotmail.com> wrote:
>
>
> I like to move out of Scarboro. My brother's tenants have given
> notice to move. . I am thinking of renting part of my brother's house.
> He works out of town and is only at his house once or twice a year for

> a month. Other ODSP recipients cautioned me that I may run into

> problems with ODSP. I don't like complications but I have the

> opportunity to move. Does anyone know if I could run into a problem
> renting from a relative?
>
>

[mspep...@cogeco.ca]

living at my parents paying rent, a rent receipt is needed just like if
you
were living at an apartment.. I also pay additonal and put in towards the
heating and and water bill but it is in my dads name so I include that when
the financial review comes around evey so often
you should have no problems at all really

Original Message:
-----------------
From: Patricia Duck pat...@sprint.ca
Date: Mon, 9 Jan 2006 00:50:42 -0500

To: odspfi...@googlegroups.com
Subject: Reply: Re: Rent & ODSP

As long as you get a letter from your brother saying how much your shelter

costs are I think that is
alright.
Pat

----- Original Message -----
From: "Karin" <tauru...@hotmail.com>
To: "ODSP Fireside" <odspfi...@googlegroups.com>
Sent: Sunday, January 08, 2006 11:08 PM
Subject: Reply: Rent & ODSP

>

[Karin]

Everything would be on paper, for sure. I won't save any money, just
want to get out of Scarborough, it's giving me the willies living here.
You hear about the shootings on the news, but they don't mention the
gunshots that go off in the middle of the night. No one got killed, so
it's not reported in the news. I feel saver downtown TO.

[Karin]

It would have to be on paper, for sure, we're not close, we only see
each other once a year. Haven't lived under the same roof for 40
years, we're both over 60 yrs. old. It's like me renting from a total
stranger, except our last name is the same, that may be a problem.
It's what caused a problem with ODSP in the past. I reverted back to
my maiden name, my brother, my son and I have the same last name, ODSP
thought I had 2 ex-husbands. But that's another story.
Thanks for the advice Angela.

[Karin]

Thanks for the advice, with him, money is not object. I'm the only
poor one in this family.

[Frank]

You might want the relative that you are renting from to supply a
business name (just like a property management company on behalf of a
landlord) so that your rental contract is actually a bona fide
business. Here's why:

If you don't claim your rent rebate (Ontario rent/property tax credit)
on your taxes every year, you are missing out on a lot of money,
hundreds of dollars per year.

And setting up a sole proprietorship with a business name for landlord
purposes is rather simple. Thus you avoid the issue of "same last
name" flagging some overzealous ODSP audit or verification program.
Your rent cheques and receipts would be payable in the name of the
business, not the relative.

Furthermore, the relative collecting rent from you can take advantage
of a wide variety of tax deductions available from the CRA from
renovations and expenses they incur in the upkeep of your rental unit.
He/she cannot do this if they do not declare the rental income to start
with. So your relative may be better off this way, too.

Despite the fact that you did not claim the provincial rent credit on
your taxes, your relative could still be held liable for taxes (and
penalties!) from undeclared rental income. Your tax return says that
you are required by law to declare all world income from ALL sources.
That's what you declare when you sign page four of your return!
Despite any tax return preparer's "advice" to you, it's YOUR signature
on that bottom line. Be careful.

I wouldn't necessarily trust what anybody says on this issue either,
except for a competent tax attorney or tax accountant who can show you
the relevant tax law pertaining to your situation, or proposed
situation.

Both the above aspects make the deal kosher in the eyes of ODSP, and
should help you steer clear of issues and questions from them
(therefore less stress for all involved). You can't get enough peace
of mind and less stress, when you are in ODSP-land. Take any you can
get. And that goes double when you have to deal with the CRA and ODSP.

My advice: stay above board with this kind of stuff. And good health
to you.

--Frank.

[Karin]

Hi Frank
Excellent advice, thanks suggesting paying rent to the business name.
No problem, my brother owns a charter sail boat boat and diving
business. It would definetely be done above board. I always claim my
ontario tax credit. I need those almost $300. Have to, ODSP checks
the income tax returns. If I make the move, paying the rent to the
business name is a great idea, thanks
karin