Who Must Fill Out RL-31 Slips?
If you own a leased dwelling on the last day of the tax year for which you are filing, you must provide a RL-31 to your tenants or subtenants. This rule applies to individual property owners as well as partnerships that own leased dwellings.
However, the type of dwelling also affects whether you need to issue this slip.
What Requirements Do Dwellings Need to Meet?
The dwelling must be in Québec, and it must not fall into any of the following categories:
- Low-rent housing
- Hospitals, residential and long-term care (CHSLD), or rehabilitation centers maintained by public or private institutions and governed by the Act respecting health services and social services
- Facilities where intermediate or family-type resources are offered
- Less than three rooms in your primary residence without a separate entrance or sanitary facilities
- Part of a hotel or rooming house that was leased or subleased for less than 60 days.
For example, if you rent a room to a boarder in your home, you do not have to issue an RL-31 slip. However, if you have a separate flat in your home with its own entrance and bathroom, you must issue an RL-31 slip.
How Do You Obtain RL-31 Slips?
Review this link from Revenu Quebec for information on obtaining a RL-31. TurboTax Premier makes it easy for rental property owners to get their taxes done right. Using TurboTax, you can access the RL-31 when completing your information about the Solidarity Tax credit in the provincial section of your return.
What Information Does the RL-31 Slip Require?
The RL-31 slip requests information related to the year, the dwelling address and the total number of tenants. You must also know the last addresses and postal codes of all your tenants. Please view this link (French only) for more detailed information on how to prepare this slip.
What Do You Do With RL-31 Slips?
As a landlord, you are required to have two copies of your RL-31 slips. The first copy is the RL-31 slip that you submit to Revenu Québec. The second copy is an RL-31.CS slip, which you give to your tenants. Both copies must be distributed by the last day of February following the year for which you are filing.
How Do Your Tenants Claim the Solidarity Tax Credit?
To claim the credit, your tenants will use their RL-31 slips to complete Schedule D of their provincial tax return (TP1). Married couples may claim the credit once, but either person may claim it, depending on what’s most beneficial based on their situation. If approved, your tenants can look forward to receiving the credit through direct deposit on a regular basis throughout the year.
The solidarity tax credit is based on your tenants’ situations on the last day of the year for which they are filing, and this entitles them to payments from July of the current year through June of the following year. For example, if your tenants are filing returns for tax year 2020, they use their situation on Dec. 31, 2020, to qualify for solidarity tax credits from July 1, 2021, to June 30, 2022. Depending on the amount they qualify for, they may receive monthly, quarterly or annual payments.
If your tenant’s situation changes after Jan. 1, that does not affect this credit unless the tenant goes to prison, moves out of Québec or their spouse dies.
Can You Qualify for the Solidarity Tax Credit?
In some cases, the landlords themselves may also qualify. You don’t necessarily have to be a renter to qualify for this credit. Revenu Québec offers the solidarity tax credit to property owners. To qualify, you must be over the age of 18 and a resident of Québec. If you are under 18, you can qualify if you are married, emancipated or have a child.
If you reside in a property you own, you will not receive an RL-31 slip. However, you may still claim the credit by filling out Schedule D. You just need the roll number or identification number associated with your property from your municipal tax bill. This video link will provide you with all the information needed to understand how to claim this credit.