Hi there,
I am currently a customer using Ufile Pro. I have a client with a rental suite in their principal residence which they have rented for many years.
They had a tenant which they asked to move out (with written notice and sufficient amount of time to move) so that their son could move into the suite.
The tenant mentioned above, did move out and then found out that their son did not move in (change of plans) so the former tenant then filed a dispute resolution through the BC Residential Tenancy Branch. The former tenant's (applicant) dispute description states: "I was evicted on the pretext of their son moving into my suite that I was renting. I have observed and am aware that the suite hasn't been rented to their son. I had to relocate to another part of town. Due to this my rent has increased substantially."
The former tenant was asking for 13900.00 but settled with the landlord (my client) for 10000.00 in 2022. So they are out the 10000.00 plus legal fees of approx 2640.00.
Can the 10000.00 plus legal fees be deducted against the rental income from new tenant (14000.00) in 2022?
Please help, I have scoured CRA's website and tried to google this many times but I can't find a clear answer to this. I also tried to call CRA but they are unavailable because of the current labour dispute.
Thank you,
April
