Query re implications of renting primary residence
I have some questions that I hope the BP community can answer for me.
My elderly father has just moved into in a retirement home. He is weighing the pros and cons of selling versus renting out his home in the GTA. He owns the house free and clear, but he hasn't maintained it very well the last few years as his health has declined.
If he rents it, is it still his primary residence? What are the tax implications of renting it when he is living elsewhere? Can he claim repairs or utilities on his tax return to offset any rent monies he collects? Will it alter his tax bracket? Will he have to pay capital gains on it if it has been rental property when he does eventually decide to sell it? The house is starting to need a lot of work. Would renting it help make renovations and repairs a better financial option? I'm not really sure of what questions to ask or what issues his living situation might raise, so I'd appreciate any insights the community can give me to understand the implications of both renting and selling in his situation.
Thanks,
Carolyn