How to declare rental income?

How to declare rental income?

Rental income must be declared annually in the income tax return.

• Federal: Form T776 – Statement of Real Estate Rentals

• Quebec: Form TP-128 – Rental Income and Expenses

The taxpayer must declare:

• the rents collected

• eligible expenses (mortgage interest, municipal and school taxes,

• insurance, maintenance, management fees, etc).

The difference between income and expenses represents the net rental income.

taxable.

The capital cost allowance (CCA) is optional and must be used with

caution, as it may result in a recapture of depreciation upon sale

of the building.