Rental income or business income

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

In most cases, you are earning an income from your 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 comes from property or a business, go to Interpretation Bulletin IT-434, Rental of Real Property by Individual, and Interpretation Bulletin IT-434SR, Rental of Real Property by Individual.

Forms and publications

• Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
• Guide T4036, Rental Income
• Form T2125, Statement of Business or Professional Activities
• Form T776, Statement of Real Estate Rentals