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Landlord T776 basics: what to report from your rental income

If you rent out a property in Canada, the CRA wants your rental income and expenses on Form T776. Here is what that means in plain words.

Not tax advice. This is general information, not advice for your situation. Date checked: October 23, 2026. Rules can change, so read the sources at the bottom.

Is it rental income?

The CRA's rental income guide says rental income is money you get from renting property you own or have use of. That includes houses, apartments and rooms. It is usually income from property when you give only basic services such as heat, light, parking and laundry. If you also give cleaning, security or meals, the CRA says it may be a business instead, and you would use a different form.

The calendar year

You report rental income for the calendar year, January 1 to December 31. The CRA says every rental property has a December 31 year-end.

Income lines to track

  • Line 8141: gross rents paid in cash or by cheque, including short-term rentals.
  • Line 8230: rent paid in goods or services, counted at fair market value.
  • Line 8140: the short-term rental part of those rents. It is included in line 8141, so do not add it twice.
  • Line 8299: your total gross rental income, which is line 8141 plus line 8230.

So if a tenant mows your lawn instead of paying part of the rent, that value still counts as income.

Expense lines to track

The CRA lists these common expense lines:

  • Advertising (8521) and insurance (8690).
  • Interest and bank charges (8710).
  • Office expenses (8810) and professional fees (8860).
  • Management and administration (8871).
  • Repairs and maintenance (8960).
  • Salaries (9060) and property taxes (9180).
  • Travel (9200), utilities (9220) and motor vehicle expenses (9281).
  • Other expenses (9270).

Loan fees are spread over five years, at 20% a year, the CRA says.

What you cannot deduct

  • Mortgage principal. Only the interest is an expense.
  • Land transfer tax.
  • The value of your own labour.

The CRA also says a capital cost allowance claim cannot create or increase a rental loss. This guide does not cover that claim.

If you share the property

With a co-owner, the CRA says you report the gross income for the whole property on line 12599 of your T1 return and enter your share as a separate amount. If you rent only part of your home, you split expenses by square metres or by number of rooms. For example, 4 rooms out of 10 means 40% of the whole-building expenses. The part for your own use is the personal portion, and it comes out of the total.

Deductible expenses, in one line

The CRA works it out this way: total expenses, minus the personal portion, minus any non-compliant amount for short-term rentals. What is left is what you can deduct.

Short-term rentals

The CRA says a short-term rental is a residential property rented, or offered for rent, for less than 90 consecutive days. Short-term rents are shown on line 8140 and are included in line 8141. A permit rule can limit your deductions, so read our guide on tracking short-term rental income if you host guests.

Where the totals land

The T776 gives you net rental income before adjustments (line 9369) and then your net income or loss (line 9946). On your T1 return, gross rental income goes on line 12599 and net on line 12600.

Keep your records

The CRA says to keep invoices, receipts, contracts and other supporting documents. Keep them generally for six years from the end of the tax year they relate to. A simple habit helps: one folder per property per year, with each receipt named by date and what it was for.

A short monthly routine

  1. Log each rent payment on the day it arrives, with the date and the method.
  2. Log each expense with its line, and save the receipt.
  3. At month end, check that rent received matches your bank deposits.
  4. At year end, add up each line before you open the form.

If you only have one property and a few expenses, a plain sheet is enough. If you have several, the same lines on every sheet save a lot of time. Also read our guides on cash vs accrual and short-term rental income.

Sources

Date checked: October 23, 2026. Not legal, tax or accounting advice. Rules change, so check the official pages before you act.

Want this in a ready-to-use tool? The tracker is a spreadsheet for rent received and expenses by property, laid out along the T776 lines. See the Canadian Landlord Rental Income and Expense Tracker (CA$24) or Get your kit.

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