You can receive rental income in the form of:
- cash or cheques;
- kind (goods or commodities instead of cash); or
On Form T776, Statement of Real Estate Rentals, list the address of your rental property and the number of units you rented.
Report the rental income in the "Income" section of Form T776 in the following order:
Line 8141 - Gross rents
If your tenant pays you in cash or by cheque, include the total rents you earned in the year on line 8141.
Line 8230 - Other related income
Other related income includes more than the rent you receive each month. It can also include income from the following sources:
- Premiums and leases - You may receive an amount for one of the following:
- granting or extending a lease or sublease;
- permitting a sublease; or
- cancelling a lease or sublease.
If your tenant pays you in kind or with services, report its fair market value on line 8230.
- Sharecropping - You can earn income from renting farmland either in cash or as a share of the crop. Report any cash payments on line 8141. Report the fair market value of any crop share you earn on a sharecrop basis on line 8230.
Glenn is a tenant in an apartment building. He owns a truck with a plough on it. His landlord, Sonya, asked him to plough the parking lot after every snowfall. Sonya does not pay Glenn cash for his work, but she reduces his monthly rent accordingly.
On Form T776, Sonya reports the rent she charges Glenn on line 8141, “Gross rents,” and the fair market value of Glenn’s services as “Other related income,” on line 8230. She then claims the fair market value of Glenn’s snow ploughing services that relate to her rental operation as an expense.
Line 8299 - Gross rental income
Your gross rental income is your total "Gross rents" on Form T776. Enter this amount on line 160 of your income tax return.
If you are a co-owner of the rental property or a partner of a partnership that does not need to provide you with a Slip T5013, Statement of Partnership Income, enter the gross rental income for the entire property on line 160 of your income tax return. Do not split the gross income according to your ownership share.
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