NOT financial advice - seek advice from a professional for your specific situation

    TaxKilnCanadian tax guidance

    Start here

    Start here: I rent out property

    Rental income is reported on Form T776, not the business form -- and it comes with its own quirks, from the CCA recapture trap to the fact that residential rent is GST-exempt.

    Last reviewed:

    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact CRA. Read our editorial scope →

    1. 1

      Get the rental income basics

      How gross rents, expenses, and net rental income work on Form T776, and the line between a current repair (deductible now) and a capital improvement (added to CCA).

      Landlord tax guide →
    2. 2

      Be careful with CCA on the building

      You can claim capital cost allowance on the building (not the land), but CCA cannot create or increase a rental loss -- and claiming it can trigger a recapture tax when you sell.

      CCA classes reference →
    3. 3

      Claim the right rental expenses

      Mortgage interest (not principal), property tax, insurance, maintenance, and management -- apportioned if you rent only part of a property or part of the year.

      Deductible expenses guide →
    4. 4

      Know that residential rent is GST-exempt

      Long-term residential rent is an exempt supply -- you do not charge GST/HST on it and cannot claim input tax credits. Commercial rent and short-term rentals are different.

      GST/HST guide →
    5. 5

      Plan instalments if you owe

      Rental profit on top of other income can push you over the $3,000 net-tax-owing line and onto quarterly instalments.

      Instalments guide →

    Also useful

    Last reviewed: