CRA forms
Form T776 Explained: Reporting Rental Income
April 30, 2027to file a 2026 return with Form T776 and pay any balance owing, unless you also have self employment income.
Sources checked October 20263 min read
Who files Form T776
Form T776, Statement of Real Estate Rentals, is where an individual reports income from renting out property: a basement suite, a condo, a house or a small building. It goes with the personal return, so it is the form for property owned in your own name rather than through a corporation.
Owning a property with someone else, a spouse or common law partner included, usually makes you co owners rather than partners. Each owner reports their share of the income and expenses on their own T776, and Part 2 lists the other owners and their percentages. Every rental property has a December 31 year end, so the form always covers the calendar year.
Key points
- Reports rental income and expenses from property you own personally
- Gross rents go on line 12599 and net rental income on line 12600
- Capital cost allowance cannot create or increase a rental loss
- Every rental property uses a December 31 year end
The lines that matter
Rental income is reported on the accrual method in most cases. The cash method is allowed only where it would give almost the same result, which usually means almost nothing is owed to you or by you at the end of the year.
| Line | What goes there |
|---|---|
| 8141 | Gross rents for all units, in the year you receive them |
| 8140 | The part of those rents that came from short term rentals |
| 8230 | Other income, such as lease premiums |
| 8299 | Total gross rental income, carried to line 12599 of the return |
| 8521 to 9281 | Expenses: advertising, insurance, interest, office costs, professional fees, management fees, repairs, wages, property taxes, travel, utilities and vehicle costs |
| 9949 | The personal part of those expenses, for example where you live in part of the building |
| 9369 | Net income or loss before adjustments |
| 9936 | Capital cost allowance for the year |
| 9946 | Your net rental income or loss, carried to line 12600 of the return |
Repairs, improvements and depreciation
The most common argument with the CRA is over whether money spent on a property is a current expense, deducted this year, or a capital expense, added to the cost of the building. Restoring something to its original condition, such as repainting, is usually current. Something that lasts and improves the property beyond where it started, such as new siding, is usually capital.
Capital costs are written off over time through capital cost allowance, at 4% a year on the declining balance for most buildings in Class 1. Land is never depreciable. And capital cost allowance cannot be used to create or increase a rental loss, so it is optional in any year and often left unclaimed when the property already shows a loss.
Short term rentals
A short term rental is a residential property rented for less than 90 consecutive days at a time. Where the province or municipality does not allow one at that location, or requires a licence, permit or registration the owner does not have, the expenses for the period it breaks those rules are not deductible. Form T776 calculates the amount denied in Chart A and takes it off on line 9366.
Quick answers
Where does rental income go on the return?
Gross rental income from line 8299 goes on line 12599, and net rental income or loss from line 9946 goes on line 12600.
Can I claim capital cost allowance if my rental shows a loss?
No. Capital cost allowance can reduce rental income to zero but cannot create or increase a rental loss.
My spouse and I own the rental together. Who reports it?
Each of you, on your own Form T776, reporting your share of the income and expenses according to your ownership.
Related pages
Official sources
Call or email and we will tell you which records we need and what the work costs, in writing, before anything starts.
Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.