Tip of the Week

Rental Income

Rental income is income you earn from renting property that you own or have use of.  You can own the property yourself or with someone else.  Rental income includes income from:

  • houses

  • apartments

  • rooms

  • space in an office building and,

  • other real or movable property

If you receive any rental income you should report the total income and then claim any of the following expenses:

  • advertising

  • insurance

  • interest

  • maintenance and repairs

  • management and administration fees

  • motor vehicle expenses

  • office expenses

  • legal, accounting and other professional fees

  • property taxes

  • salaries, wages and benefits

  • travel

  • utilities

If you rent out part of the property which you live in, then a personal portion of the expenses will have to be allowed for.

You are required to keep detailed records of all income received and retain all supporting documents such as receipts for all expenses incurred.

The net income you receive from rental property is entered on line 12600 of your tax return.  Taxes paid on any profit will depend on which tax bracket you fall into that year.

 

Capital cost allowance (depreciation) can also be claimed, but there are limits and restrictions.

 

Questions?  Call or email today!

© 2023 by Herbert & Company. Proudly created with Wix.com