Rental income
To enter information about your rental income, follow the steps
below:
1. On the "Left-side menu on the Interview tab", select
"Interview setup".
2. On the page that appears to the right, go to the
"Rental income" group, check the box "Rental property
income" also if you paid tax by instalments. Then go to "Tax
paid by instalments and tax transfer" group, check the box
"Tax paid by instalments and tax transfer" and click
"Next" at the bottom of the page.
3. Return to the "Left-side menu on the Interview tab",
select "Rental Income".
4. On the page that appears to your right, click on
the plus sign "+" icon to the right of the
line "T776 - Rental Income property".
5. Complete the first page entitled "T776 - Rental property
identification". On the line for "Percentage (%) of personal
use of your rental property", enter your personal use portion
of the building. If you do not live in the building, leave the
field blank.
(If you are the co-owner of the building with your spouse see
point #11)
6. Please indicate whether you are sole proprietor or co-owner
of the property, to do so, go to the "Type of ownership of the
rental property" line and select the option that suits you best
from the drop-down menu. Then, on the line "Percentage interest
in the partnership" enters your percentage.
7. On the next page, enter your income and expenses in relation
to this property.
8. If you used the services of a professional contractor to
repair your building, use the sub-section "Labour costs" to
enter the relevant information. Please make sure in this subsection
that the amount of repair has not already been entered in the
expenses beforehand: make sure to choose the appropriate option
from the drop-down menu for the line "Do you wish to add these
labour costs as an expense on the income statement".
9. If you want to claim depreciation for your property, click on
the "CCA" sub-section and select the appropriate
class, usually Class 1.
10. On the page that appears, enter the relevant information. If
you do not want to claim depreciation, go to the line "Limit to
the CCA" and enter "$0.00". However if you wish to claim
a portion of the depreciation or any other amount, it is limited to
the maximum amount of this category. Please note that you
cannot claim CCA when you have a rental loss.
11. If you are the co-owner of the building with your spouse or
other partner, click on the sub-section "Partners", and on
the page to the right, choose your option.
12. If your spouse is a co-owner of the rental property and
completed his or her tax return along with yours, there is no need
to enter the information in your spouse's file, as it will be
transferred by the program and form T776 will be generated. The
same applies for a resident of Quebec and form TP-128 will be
produced by the program. However, if your spouse wants to
claim expenses different from yours, all the information will then
have to be entered again separately in his or her own file. For
all other business partners, they will have to enter the
information in their own file.
Forms T776 (federal)
and TP-128 (Quebec) will be generated by the
program.
The amount of rental income will be reported on
line 12599 (gross) and
line 12600 (net) of the federal return and, for
Quebec residents, on line 168 (gross) and line 136 (net) of the
Quebec return.
For more information, please consult the CRA website at the
following link:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/rental-income-line-126-net-line-160-gross.html
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4036.html
For Quebec residents, you can consult the Revenu Québec website
at the following link:
https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/96-to-164-total-income/line-136/
https://www.revenuquebec.ca/fr/services-en-ligne/formulaires-et-publications/details-courant/in-100-v/
ID: 20200831100719NA.xml
Webpage: KPA320-20200831100719NA.htm
