Tax Guide/Income
Rental income
Updated November 4, 2026
Report your rent and deductible expenses on Form T776. No slip is issued, so you must keep your own records.
Common expenses
- Mortgage interest (not principal)
- Property tax, insurance and utilities you pay
- Repairs, advertising and management fees
If you rent part of your home, deduct only the portion that relates to the rental.
Repairs or improvements
A repair restores something and is usually deductible now. An improvement adds lasting value and is usually claimed over time.
Capital cost allowance
You may claim depreciation, called CCA, but it cannot create or increase a rental loss. CCA claimed can be added back to income when you sell, and it can affect the principal residence exemption on part of your home.
Short-term rentals have extra rules. In some cases, expenses are denied when the rental does not comply with local licensing rules.