Rental income guide

Entering this Amount (from Forms):

Entering rental income (line 12600 and T776)

Investment features are only available in the Premier edition of TurboTax. You must upgrade to Premier (if you have investments or rental income). To add these features, upgrade your TurboTax product according to your needs.

If you are a partner and you have T5013 slips, enter the amounts from your T5013 slips in the T-slips entry screen.

Using the T-slips entry screen.

If you are a partner and you do not have T5013 slips, complete Form T776 using the partnership financial statements.

To find this form, use Form Lookup and enter the keyword t776

Complete a separate Form T776 for each rental property you have. TurboTax provides 18 separate rental statements.

TurboTax completes the Period from and to section automatically. All rental properties have a December 31 year-end. If this is the first year of operation, override the Period from date to reflect the year, month, and day your rental operation began.
If you are a co-owner or member of a partnership:
1. In the Income section, enter the address and gross rental income for the entire property. Do not split the gross income according to your ownership share.
2. Enter the amount of deductible expenses you have as a co-owner or partner, whichever applies, that you did not deduct elsewhere on the form. Do not enter expenses if you were reimbursed for them.
3. Enter the total amount of undepreciated capital cost (UCC), additions and dispositions on page 3.
If you rent out part of the building that you live in, you can only claim the portion of your expenses that relate to the rented part of the building.
1. For lines 8521 to 9270, enter the full amount of expenses in the Total expense column, and enter your personal percentage in the Personal % column. The allowable deductible expenses are entered on line 7.
2. If you have other expenses as a partner or co-owner, subtract your personal portion before entering them on line 9945 or 9943.
If you have a terminal loss, see Recapture of CCA or Terminal Loss in Entering capital cost allowance - rental operations (building and equipment costs) for instructions on completing form T776.

TurboTax performs the calculations on lines 9369 to 9946 of the T776 based on the type of ownership. TurboTax also transfers the appropriate amounts to lines 12600 and 12599 of your T1 General.

A fleur de lys symbol in a field on a federal form indicates that you can enter a different value on the corresponding Québec form. See Québec if Different Value for more information.

Entering this Amount (from Interview):

Entering rental income and expenses (interview)

Enter rental income and expense information (including capital cost allowance) in the INCOME & EXPENSES section of the interview.

If your rental income is reported on a T5013 slip, enter the information in the T-slips entry screen instead.

Using the T-slips entry screen.

On the first Personal Tax Profile screen, answer Yes to the question, "did you have income from investments such as interest earned on investments, the sale of stocks or stock options, the sale of real property, income from rental property or other related investment expenses?"
Answer Yes to the Did you have income or expenses from a rental property? checkbox.
On the Real Estate Rentals Statement screen, select the Income from a rental property checkbox and click Continue.

Frequently Asked Questions

Is it rental income or business income?

Rental Operations - Property or Business Income?

The Canada Revenue Agency says...

To determine whether your rental income is from property or from business, consider the number and kinds of services you provide for your tenants.

In most cases, you are earning income from property if you rent space and provide basic services only. Basic services include heat, light, parking, and laundry facilities. If you provide additional services to tenants, such as cleaning, security, and meals, you may be carrying on a business. The more services you provide, the greater the chance that your rental operation is a business.

For more information about how to determine if your rental income is income from property or income from business, see Interpretation Bulletin IT-434, Rental of Real Property by Individual, and its Special Release.

Note:

If your rental operation is a business, see Guide T4002, Business and Professional Income.

If your rental income is from property (not business), see Guide T4036, Rental Income.