My question is: Canadian-specific QUESTION: Hi. I love your website. My wife and I just purchased a townhouse in Sun Peaks with another couple from Edmonton for the purpose of generating nightly rental income. I have the following questions: 1. If we decide to use an online company to build our own website and rental management structure, are we able to write off the use of the office space in both of our homes if the duties of maintaining the website and rentals is shared among both couples? 2. Is it wiser to purchase or lease a computer? Can both couples deduct a purchase/lease of a computer? In other words, if both couples purchase or lease a computer, can both computers be tax deductible? Thank you for your time, IXXXX Langley, B.C. ---------------------------------------------------------- david ingam replies: The rental of a condominium does not usually generate a deduction for an office in the home of the participants. However, IF you are establishing a "stand-alone" office and not using it part time for "any" other purposes, the deduction of an office in the home would likely be deductible because of the "business" nature of single night rentals. However, because the office is in your home, the expenses can only be claimed if you have a profit. To claim the business income and expenses, you should use form T2124 instead of the usual rental schedule T776. If an office is deductible for one of you, it would be deductible for both of you. However, again, if you set up a separate office which you used "exclusively" for the business, (no kids homework, no personal correspondence by email, no on line computer games, not part of a guest room), you could make a claim but your Edmonton partner with the computer set up in a corner of the living room, could not. (Our living/dining room area has two computers set up) Should you buy or lease? I would only buy a computer and again I want to make a point. I am answering this on a used PII 300 IBM I bought for $50.00 US on eBay. the monitor is a used 17" bought for $110.00 at the Second Hand Computer Store in North Vancouver and the printer is a used Lexmark 4049 bought on eBay for $80.00 US delivered . Each station of our 15 computers in our office represents less than $300 Canadian for a working computer with the same qualities and those are year old prices. A six computer netwrok in our house cost less than $2,000 complete. You can do what you want with a used PII system for $200.00. Leasing makes no sense at those prices. Hope this helps David Ingram of the CEN-TA REALTY Group US / Canada / Mexico tax and working Visa Specialists US / Canada Real Estate Specialists 108-100 Park Royal South West Vancouver, BC, CANADA, V7T 1A2 (604) 913-9133 - Fax 913-9123 [email protected] www.centa.com www.david-ingram.com Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts"
