Quote:
Originally Posted by Gumby
Agreed! 
Long story short - I have a basement suite which was rented out from September 2015 to January 2016. After doing it 100% legal (report my extra income, pay extra property taxes, paid for a fucking business license) my net income from having a basement suite was pretty lame. And even now, while it's sitting empty, I'm still paying for the extra property taxes and business license. |
If all people did that, it would cool the Van housing market quick. New builds now commonly have 2 basement suites and laneway house, yet sell quick and easy because owners see an easy $2500-3000+ a month tax free in mortgage help. Add that to an average $2000/mth regular mortgage contribution and you don't need to make CEO money to afford a 2M house. Now think of how that. that extra taxed income can contribute to actual social problems if everybody went about it the proper way.
Quote:
Originally Posted by quasi
The city actually goes after these people in my area for the property taxes, not to sure about if anything is done about income tax and reporting. They inspected my place to make sure I didn't have a suite and I've heard stories from neighbors of them sneaking into yards and in one case opening a door and popping there head inside an unlocked door like fucks could be given to see if there was a suite downstairs.
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The increase in property tax I'm guessing just goes to pay for increased use of garbage, water, etc. What is the fine/penalty? Clearly not big enough to deter people from doing that. Then we also have the issue of essentially tax evasion with illegal rental suites and non-reported rental income, not sure what sort of hurt CRA could deliver but I'm guessing they know this happens a lot and they can't really do anything to enforce it unless somebody rats out on a landlord?