Income
You can receive rental income in the form of:
- cash or cheques
- kind (goods or commodities instead of cash)
- services
On form T776, list the addresses 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 at line 8141.
Line 8230 – Other income
If the tenant pays you in kind or with services, report its fair market value on line 8230.
Enter, on this line, the total income you received from other sources. Some examples of other income are:
- premiums and leases – You may receive an amount for one of the following:
- granting or extending a lease or sublease
- permitting a sublease
- cancelling a lease or sublease
- sharecropping – You can earn income from renting farmland either in cash or as a share of the crop. Report any cash payments as rent in the "Gross rents" column, and report the fair market value of any crop share you earn on a sharecrop basis on line 8230
Example
Glenn is a tenant in an apartment building. He owns a truck with a plow on it. His landlord, Sonya, asked him to plow the parking lot after every snowfall. Sonya does not pay Glenn cash for his work, but she reduces his monthly rent accordingly.
Sonya reports the rent she charges Glenn at line 8141 as "Gross rents," and the fair market value of Glenn’s services as "Other income," at line 8230. She then claims the fair market value of Glenn’s snowplowing services as an expense that relates to her rental operation.
Air quality improvement tax credit
This credit is received immediately before the end of the tax year to which it relates and is considered government assistance. Government assistance is generally included in income. When you receive government assistance for the acquisition of a depreciable property, reduce the capital cost of that property by the amount of the assistance.
For more information on government assistance, see Grants, subsidies and other incentives or inducements and Interpretation Bulletin IT-273, Government Assistance – General Comments.
To calculate your credit for 2022, fill in Form T2039, Air Quality Improvement Tax Credit.
Line 8299 – Gross rental income
Your gross rental income is your total "Gross rents" on form T776. Enter this amount at line 12599Footnote 1 of your income tax return.
If you are a co-owner of the rental property or a partner in 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 at line 12599Footnote 1 of your income tax return. Do not split the gross income according to your ownership share.
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