good idea about the extra meter thing and the other ideas too thanksDoing it legit is not that difficult as long as you have the ceiling height and can satisfy parking issues (City of Vancouver that is).
You will have to do more some work with regard to sound proofing and fire separation between the suite and the main house space.
And if you have an unfinished basement - you should look at adding a separate electrical meter with Hydro so the tenant pays their own bills. No more bill sharing.
shhhh...let's not open that can of wormsHow about taxes on sale?
If a part of the house is an income producing rental unit, after sale, shouldn't that part be taxed for a capital gain?
are you an accountant? according to several tax accountants I have spoken with, this is simply not true. The house, with or without suite is considered primary residence. Perhaps if it were a legal duplex that would be different, but a income producing suite doesn't generate a capital gain.There might be some concerns. If an owner installs a separate electrical meter with Hydro etc, there is a question: what is the owner's intention about that property?
A separate electrical meter might be an evidence that an intention is not a personal enjoyment, but there is a busyness activity. Logically, income producing property has to be taxed as a capital gain when sold.
Also having a legal suite, certified by the city and claiming the rental income on your taxes are two different things.
I find that their is quite a bit of income and thus tax, as I cannot deduct CCA due to it being my principal residence and I have no mortgage interest to deduct.... Funny thing is once you deduct all the eligible expenses there is usually little or no net rental income and therefore no tax owing...