CLAIM RENTAL INCOME

Keep More of Your Rental Profits

Claim all eligible expenses, reduce taxable income, and protect every dollar earned from your Canadian rental property.

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What you need to know about claiming rental income

Claim Rental Income from Canadian Properties

Earning rental income in Canada comes with specific tax obligations. This applies whether you live in Canada or abroad. Properly reporting rental income ensures compliance with the Canada Revenue Agency (CRA) and helps you maximize deductions to reduce your taxable income.

Why Accurate Rental Income Reporting Matters

Reporting rental income correctly is essential for avoiding CRA reassessments, penalties, and interest. Every rental property has unique reporting requirements, including allowable expenses and depreciation. Accurately claiming rental income ensures:

  • Taxes are calculated correctly based on net rental income

  • All eligible expenses are claimed to reduce taxable income

  • CRA compliance is maintained for both residents and non-residents

Non-Resident Rental Income Tax Considerations

Non-residents earning income from Canadian rental properties have additional CRA obligations. Rental income is typically taxed at 25% withholding unless the property owner files a Section 216 non-resident return to pay tax on net rental income instead of gross income.

Never pay more than you need to

Share information about your self-employment, freelance, or rental income, and every required tax form is added for you.

Whether you’re living in Canada or abroad, all available deductions are identified to help increase your tax savings.

Enjoy peace of mind knowing your return is accurate, compliant, and optimized for the highest possible refund.

Why choose C.A.T.S for your rental income claims?

Maximum Refund Guarantee

We search for every eligible deduction and credit to maximize your return.

Specialists in Non-Resident Tax

We understand the complexities of cross-border income, residency changes, and foreign asset reporting.

Completely Done-For-You Process

Send us the required documents and let our team of tax professionals handle the rest.

Why our clients love us

  • "Couldn't Recommend Them Enough"

    I have been going to CATS accounting for over 10 years now. I have never been disappointed and have never had any mistakes on my files. All the accountants are thorough, professional and very adept at what they do.

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  • "Exceptional Customer Care and Commitment"

    I would like to thank C.A.T.S Accounting office for their professionalism and sincere dedication in providing their accounting tax services to me throughout the past years. [Tax Expert Name] and his team go always go the extra mile to make sure everything is done properly, using all the tools and knowledge at their disposal. It is rare to encounter such a high standard of care and commitment.

    Sherine B.

  • "Eliminated My Anxiety About Taxes"

    There are no words grand enough to express how much I enjoy working with [Tax Expert Name] and his fantastic team or how they have cleared the cobwebs from my mind thus reducing the anxiety associated with taxes. I am so blessed to have an accounting group to trust and console with at unexpected times. Thank you for your care and attention!

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Frequently asked questions

  • Rental income must be reported on your annual tax return using the T776 form for rental properties. Include all amounts received from tenants and subtract eligible expenses to calculate net rental income. Reporting accurately ensures compliance with CRA rules and avoids reassessments or penalties.

  • You can deduct expenses that are directly related to earning rental income. Common deductions include:

    • Mortgage interest

    • Property taxes and utilities

    • Repairs and maintenance

    • Insurance and property management fees

    • Advertising costs

    • Depreciation (Capital Cost Allowance)

    Deducting eligible expenses reduces taxable income and maximizes potential tax savings.

  • Yes, non-residents earning rental income from Canadian properties must comply with the CRA. Taxes are typically withheld at 25% of gross rental income unless a Section 216 election is filed to pay tax on net income instead. Filing correctly can reduce taxes and allow deductions for expenses.

  • A Section 216 election allows non-residents to pay tax on net rental income rather than the default 25% withholding on gross income. This can significantly reduce taxes owed if deductible expenses are higher than the withholding amount.

  • Net rental income is calculated by subtracting all allowable expenses from total rental income. This includes mortgage interest, property taxes, insurance, repairs, utilities, and management fees. Net income is the amount reported for tax purposes.

  • Yes, income from short-term rentals (like Airbnb or VRBO) is considered taxable rental income. All expenses related to generating that income can also be claimed to reduce taxable net income.

  • Each property must be reported separately with its income and expenses. Properly tracking each property ensures accurate calculations and maximizes deductions across all rental units.

  • Keep all records of rental income received, invoices or receipts for expenses, mortgage statements, property tax bills, insurance policies, and any agreements with tenants. Proper documentation is required in case of CRA review.

  • Failing to report rental income accurately can lead to reassessments, penalties, and interest charges from the CRA. Correct reporting protects against fines and ensures compliance with Canadian tax law.

  • Yes, non-residents can file rental income taxes online from anywhere. Accurate reporting, including Section 216 elections if applicable, ensures CRA compliance even while living outside Canada.

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