Canadian taxpayers are required to report all income earned during the calendar year on their personal tax returns. One item that is commonly missed is income earned from a rental property.
For every rental property that you own, you have to complete a T776 form. Essentially, this is a mini income statement for the rental property showing earned rental income, plus any expenses incurred to earn that income.
Common expenses that can be included are: advertising, utilities, insurance, property tax, mortgage interest, management fees (such as condo fees), and maintenance and repairs.
The net income amount (revenues less expenses) is what is included with your other income earned during the year.
Trust an expert with preparing your rental income schedule and all of your other tax needs. Reach out and get started today!