Rental income or business income

To determine whether your rental income is from property or from business, consider the number and types 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, go to Interpretation Bulletin IT-434R, Rental of Real Property by Individual and Interpretation Bulletin IT-434RSR, Rental of Real Property by Individual.

Note

If you determine that your rental operation is a business, go to Sole proprietorships and partnerships. You can use form T2125, and the guide T4002, to calculate your business income and expenses.

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