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Thread: Question on Tax on income

  1. #1
    CaLoonie
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    How would you report your rental income for your tax return? Do you just report the total rent you collected over the year or you report the net income like you would subtract your expenses such as mortgage or maintenance fees from the total rent collected, and then report that net amount as your income on your tax return? The reason I am asking is because in order to rent a property out, you need a business license from the city and this means you are running it like a business. So, if you are running it like a business, then you should be allowed to deduct expenses from your revenue (total rental income). I am just confused, hope you can help clarify this.
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    Last edited by Freestuffrighthere; Sun, Jan 8th, 2017 at 03:50 PM.
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  2. #2
    Mastermind Shwa Girl's Avatar
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    Canada Revenue Agency link to rental income reporting
    http://www.cra-arc.gc.ca/rental/
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  3. #3
    Dancing bean paste bun Ciel's Avatar
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    Hello, OP! Yes, there is a specific line on the tax return for rental income and for expenses. Yes you can claim eligible expenses against rental income.

    CRA is quite specific about different income streams and how they are reported. The link that @ShwaGirl posted will guide you through the expense claims and reporting/records requirements.
    Last edited by Ciel; Sun, Jan 8th, 2017 at 07:35 PM.
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    CaLoonie
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    Thank you Shwa girl and Ciel for the replies
    GET $5 OFF Herbal and Nutritional Items Coupon Code: XIF785 http://www.iherb.com Low shipping charges to Canada Save about 30-40% Off retail prices. 14,000+Brand-Name Herbal & Nutritional Items Pay No TAX on items!

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    Frosh Canuck
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    You can get your income taxes done for free if you go to the Salvation Army. They have volunteers do your taxes for you. That is where i got my taxes done last year.
    Last edited by Tierra Lemieux; Fri, Jan 4th, 2019 at 03:35 PM. Reason: grammar

  6. #6
    CaToonie
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    Quote Originally Posted by Tierra Lemieux View Post
    You can get your income taxes done for free if you go to the Salvation Army. They have volunteers do your taxes for you. That is where i got my taxes done last year.
    Not necessarily if you are running a business - rental properties


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    Quote Originally Posted by Freestuffrighthere View Post
    How would you report your rental income for your tax return? Do you just report the total rent you collected over the year or you report the net income like you would subtract your expenses such as mortgage or maintenance fees from the total rent collected, and then report that net amount as your income on your tax return? The reason I am asking is because in order to rent a property out, you need a business license from the city and this means you are running it like a business. So, if you are running it like a business, then you should be allowed to deduct expenses from your revenue (total rental income). I am just confused, hope you can help clarify this.
    We have been self-employed and owners of rental properties - forever.
    I do our income tax every year with UFile. The basic package - usually about $20 allows you to create the rental property forms etc - which also brings up the list of allowed deductions. You can claim your business licence cost to insure property, in some cases costs to collect rent, advertising for tenants etc. Strongly recommend that you insist tenants have their own insurance as well and make it a condition of the lease. Costs to generate leases

    To avoid capital losses when we sell the property, I always claim ONLY the interest in the mortgage every year when I do taxes. It makes it much neater at sale time - take the sale price - subtract the purchase price then split that amount (hopefully profit) between registered owners - capital gains is based on 50%. (Of course you can deduct costs legal fees, realtor etc)


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    Last edited by endi2000; Sat, Jan 5th, 2019 at 05:40 PM.
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