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Canadian rental income: how to fill out Form T776

A plain-English, line-by-line walkthrough of CRA Form T776, Statement of Real Estate Rentals, for individual landlords: income, expenses, personal use, co-owners and capital cost allowance.

Updated October 19, 2026 · by Tidy Landlord

Who uses Form T776

Form T776 is the CRA's statement for reporting rental income from property. Other financial statements are accepted, but the CRA encourages you to use T776 (CRA Guide T4036). Rental income is usually income from property when you rent space and provide basic services such as heat, light, parking and laundry. If you provide extra services such as cleaning, security or meals, you may be carrying on a business, and Guide T4002 applies instead.

Rental properties have a December 31 year-end.

Parts 1 and 2: identification and co-owners

Part 1 identifies you and the property. If you own the rental with someone else, including a spouse or common-law partner, you're usually a co-owner. Co-owning a rental as an investment doesn't by itself make a partnership (T4036). Co-owners fill in Part 2 with the other owners' details and shares.

Part 3: income

Line 8141, gross rents: total rents for all units for the year. Rents from short-term rentals are shown in their own column and totalled on line 8140.
Line 8230, other income: for example, amounts you receive for granting, extending or cancelling a lease, or the fair market value of services a tenant provides instead of rent.
Line 8299, total gross rental income: goes on line 12599 of your income tax return. Co-owners enter the gross income for the entire property here, not their share.

The CRA generally expects the accrual method (report rent when earned and expenses when incurred). The cash method is allowed only if the result would be almost the same.

Part 4: expenses, line by line

Line	Expense	What goes there (T4036)
8521	Advertising	Advertising for tenants, including finder's fees
8690	Insurance	Premiums for the current year only; multi-year premiums are deducted in the years they cover
8710	Interest and bank charges	Interest on money borrowed to buy or improve the rental, and interest you pay tenants on rental deposits. Mortgage financing fees are deducted over 5 years (20% a year)
8810	Office expenses	Small items such as stationery and stamps, not furniture or equipment
8860	Professional fees	Legal fees for leases or collecting rent, bookkeeping, accounting and tax preparation (not legal fees to buy the property)
8871	Management and administration fees	Property managers and agents who collect rent or find tenants
8960	Repairs and maintenance	Labour and materials for minor repairs and maintenance (not your own labour, not capital repairs)
9060	Salaries, wages and benefits	Superintendents and maintenance staff, plus your employer share of CPP/QPP and EI (not yourself)
9180	Property taxes	Property taxes for the period the property was available for rent
9200	Travel	Getting to the property to collect rent, supervise repairs and manage, under the same conditions as vehicle expenses
9220	Utilities	Gas, oil, electricity, water, cable, if the lease says you pay them
9281	Motor vehicle expenses	Only in limited cases (see below); CCA on the vehicle is claimed separately
9270	Other expenses	For example condominium fees, landscaping (in the year paid) and lease cancellation payments (spread over the lease)

Motor vehicle expenses (line 9281). With one rental property near your home, you can deduct them only if you do some of the repairs yourself and use the vehicle to carry tools and materials; trips to collect rent are personal. With two or more rental properties at different sites away from your home, trips to collect rent, supervise repairs and manage also qualify.

Personal portion (line 9949)

If you live in part of the building, enter each expense in full and the personal part in the "Personal portion" column. Costs for the rented area only, such as repairs inside a rented suite, are fully deductible; whole-building costs such as property taxes and insurance are split by area or rooms. The CRA's example: rent 4 rooms of a 10-room house and deduct 40% of whole-building costs.

Line 9369 and your share

Line 9369, net income (loss) before adjustments, is gross income minus deductible expenses, for all co-owners combined and before CCA. Co-owners then take their ownership share, subtract expenses they paid personally (line 9945), and adjust for any recaptured CCA (9947) or terminal loss (9948).

Capital cost allowance (line 9936)

You can't deduct the cost of the building, furniture or appliances in the year you buy them. Instead you claim capital cost allowance (CCA) over time, using Area A of the form. Key points from T4036:

Most rental buildings acquired after 1987 are Class 1 (4%). Furniture and household appliances are Class 8 (20%). Land isn't depreciable.
In the year you acquire property you can usually claim CCA on only half of your net additions to a class (the half-year rule), although the accelerated and reaccelerated investment incentive rules change this for eligible property.
CCA can't create or increase a rental loss, and you combine the results of all your rental properties before claiming it.
CCA is optional: you can claim anything from zero to the maximum. Claiming less leaves more of the balance for future years.

Line 9946, your net income (loss), goes on line 12600 of your return. Renting part of your home? Ask an accountant before claiming CCA on it, because of how it interacts with the principal residence designation.

Records

Keep invoices, receipts, contracts and other supporting documents, but don't send them with your return. You generally must keep records for six years from the end of the tax year they relate to (T4036).

Quebec landlords: you also file TP-128

Quebec residents report rental income to Revenu Québec as well. You enclose form TP-128-V, Income and Expenses Respecting the Rental of Immovable Property (or a statement of rental income and expenses), for each immovable, and report net rental income on line 136 of your Quebec return (Revenu Québec, line 136). If you paid for labour, other than your employees' wages, to maintain, repair or renovate a rental building, you must also complete form TP-1086.R.23.12-V, Costs Incurred for Work on an Immovable. Our French Quebec edition maps every category to both T776 and TP-128 lines.

Frequently asked questions

Where does Form T776 go on my tax return?

Total gross rental income (line 8299) goes on line 12599 and your net rental income or loss (line 9946) goes on line 12600 of your T1 return (CRA Guide T4036).

Do co-owners each fill out a T776?

Yes, each co-owner reports. Line 8299 shows the gross income for the whole property and line 9369 the net for all co-owners; you then enter your share based on your ownership percentage and list the other co-owners in Part 2.

Can I claim CCA to create a rental loss?

No. CCA can't create or increase a rental loss. Combine the income and losses from all your rental properties first; if the total is zero or a loss, you can't claim CCA on them for the year.

Sources

This guide is general information to help you organize your records. It is not tax, legal or accounting advice, and rules and amounts change every year. Confirm how they apply to you with a qualified tax professional or the official sources linked above before you file.

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