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e,#.4 PAGE 26, WEDN ESDAY, NOVEMBER 18, 19981, Wl-ITBY FREE PRESS Renting part of new home fo such a house and th Re nting -part of house willhelp carry mort-gage corni;on. er brings tax complicatia By Steven 1. Roth. CA sh'ould be sufficient to Your own handyman By Steven 1. Roth, CA Extra income earned handie payments on a mort- skills might be sufficient t0 Renting part of your ment in your from renting a portion of" gage of about $20,000. In handie conversion of regu. home to earn extra income that you have th vour new home mnay be just most communities, you lar living space intoa self- rnswt lsm bi emt 0po what vou need to meet should be able to earn that contained apartment. Hir- galions and tax liabilities project. those high monthiy mort- much rent or more on a ing outside contractors to that you would neyer face if Homeowners gage and tax payments. the.om aatt o thhwrkfo you is an y- ou and your family are the to take in tenar For -example, rentai in- owe o hp- expensive alternative that sole occupants. to earn extra inc corneof 500 a onth ing for a house, keep your could eat up your rentaI tcudfreaml,âso berait come of 520 a month __ ---- C èk. Lin ncome-r_-a _ --yearud or eamle àmore.eaisi eyes open tor the kinuuo place that will lend itseif to being rented. It could be a basement or a second floor, I R AK e be accessible through a separate entrance; *have ils own bathroomn; INVEST NOW, BUILD @have one room in which LATER - Estate bulid- heavy duty wiring and ing lots in prime plumbing can be installed Courtice area. Only a for kitchen appliances. few Ieft to choose ffves oé-gera f rom. FuIly serviced, DolrSneofr5 eea paved road, elegant financial advice by mem- coach îantern street bers of The Institute of lighting. Building Charered Accountants of permits available. 12 Ontario. acres of parkland. Usualiy, it is easier to Vendor will hold buv a house*that is already f lnancing at 123/4%. equipped in this way. it Vlsw today wlth Barb might even corne with Thajer, Rep. 686-1035. existing tenants, alîhough ---- you will probably pay more FLORIDA - MUST SACRIFICE Beautiful Sun 'n Lakes Estates building lot, Sebring, Florida. 60 mles south of Disney World, below frost line, approx. 10,000 sq. ft. Planned community already in progress. lncluding country club, tennis and 18 hole golf course. $11,000 at 8%, $4,500 down or best offer.1 839-0703 In some cases, couples .who already own a home firîd the'mselves with extra space after their children have grown up and moved away. It is flot unusual for the.-. to convert this int rentai accommodation, not for the money alone, since their home may already be paid for, but for the secur- ity of having someone else around. [t would also pro. vide some extra money for travel, or pursue other interests. ln such a case, it would certainily be beneficial 10 find a tenant who is willing to undertake certain tasks around the house -- garden- ing, 1looking after pets, snow shoveiling, etc. If this sounds appealing, however, you must give serious thought to the legai and financial consider- ations involved when you are assuming theý responsi- bilities of being a landiord. Steven Roth is with Wiebe Baker Proche & Co., Chartered Accountants. in Downsview. endanger the status of your house as your principal residence, a designation used by the income tax people to aiiow you to sel1 it at some fuzure time without paying ta,( on the capital gain. If vou rented two or three ro:'ms in a seven- room htuse and retained the rest f*or vour own use, it wouid iikely stili qualify as a principal residence. But if the situation was reversed, with vou using only a couple of rooms and renting the remainder, the tax department might consider vour bouse to be at ieast partiaiiy an income proper- ty, and it wouid lose some or ail of its tax exemption. Dollar Sense offer8 gen- eral financial advice by members of The Institute of Chartered Accountants of Ontario. Renovating your home to accommodate a two- or three-room self-contained apart ment may also run you int problems with local zoning and building by- iaws. Before embarking on such a project, therefore, check with the building department and make sure that your neighbourhood is zoned to permit an apart- 'ns house, and ýe necessary ceed with the 'Who decide ants in order corne shouid c about how much money they can expect. If a one-bedroomn apartment can fetch a rent of $250 a month, it wouid be unwise to expect that il is going to be rented every day of the year. A good rule is to plan on only 90 per cent occupancy, and budget for an income of 52,700'a year, flot $3,000. Keeping good records of aIl your expenses is import- ant at income tax lime. [f one.third of your house is rented, you can dlaim one- third of expenses reiating 10 the whole bouse asa tax deduction. These include mortgage interest, utilities, insurance, taxes and re- pairs. Ail of the expenses specificaiiy reiating to the rented portion may aiso be deducted. [t is not unusual, particu- iariy if you are in the early vears of a high interest morîgage boan, for these expenses 10' more than cancel out the tax you wouid be expected to pay on the rentai income. And if they exceed your rentai in- corne, they can then be used to reduce your tax on other income. Steveni Roth is with Wiebe Baker Proche & Co., Chartered Accountants, in Downsview. l SANTA CLAUS IS COMING TO TOWN!!! Yes kids, its that time again. On Saturday, November 28 there will be a Santa Claus Parade. So far there are 10 bands, some majorettes and 15 floats entering the parade. The parade will form Up at 2 p.m. behind Port Perry High School. To make sure everything goes smoothly, parade marshall Jerry Nelson will be in charge. The parade will proceed down Queen Street, ending at the Latcham Centre where Santa will talk ahd hand out goodies to the children. If you wish to enter a float or band or just dress up and join in, contact .Miriarû Price at 985-2281 or Kathy Kroonenberg at 985-2066. COMING EVENTS A pre-Christmas craft and bake sale will take place on Saturday, November 21fromn il a.m. to 3 p.m. at the Scugog Island United Church basement. This sale is sponsored by the Parent's Auxiliaries of the Scugog Island Boy Scouts, Cubs, Beavers, Girl Guides and Brownies. There will be home baking, crafts and tea tables, a children's table and a con- signment table run by Mr. and' Mrs. Ernie Edgar. The first prize, a lovely afghan, will be raffled off at 3 p.m. Tickets are being sold by the auxiliaries and are also available at the sale. Prince Albert Community Centre is having a dan- ce Saturday, November 28 at 9 p.m. Music will be provided by the Log Cabin Boys. For more informa- tion or tickets, caîl 985-2146 or 985-7471. On Saturday, November 21 the Presbyterian Women's Bazaar will take place from 2 to 5 p.m. There will be afternoon tea, homemade baking, crafts, and Christmnas decorations for sale. The Royal Canadian Legion, Branch 419, Port Perry, is having a Steak Dinner and Dance at the Legion Hall, Port Perry, on Saturday, November 21. Dinner is served at 7 p.m. and the dance starts at 9 p.m. Larry Dee will provide the music. Tickets are $7.50 per pers.on and are available at the legion hall. KIDS' CORNER You can stili win! Just send a letter about what you think Christmas is to Barbara Vansickler. The only requirement is that you be under 13 years old to enter. Your letters can be sent to Barbara Vansickler, Box 12, Group 3, R.R. 3, Port Perry, Ontario, LOB iNO or telephone 985-3447. -l'aNDP offie ers The Durhamn West New Democratic Party. riding association has elected its officers for the upcoming year. Elected president was Hugh Peacock, who was the 'NDP candidate in the last provincial elec- tion. The past-president is Dan MePherson of Whitby. Other officers are: Gord McKay of Ajax, vice-president; Pain Dawson of Whitby, treasurer; Bernie Emoff of Pickering, membership; and, Amn- by Ferren of Myrtie Sta- tion, labor liaison. The association also elected 10 delegates to the party's leadership convention in Toronto next February including Peacock. FEI as fiei Ads Seli Cali 668-61111 WANTED HOMES IN WHITBY & BROOKLIN FOR PROSPECTIVE PURCHASERS. REAL ESTATE FEE 31/2% CALL 668-0515 ASTON BRUMLEY REAL ESTATE LTD. . . . . . . . . . . . . . . .