Rental income

Determine on which return to report rental income

• Before date of death: Option 1

  Rental income earned between January 1 and the date of death must be reported in the Final Return on lines 12599 and 12600.

• After date of death

  If the estate earned rental income after the date of death, it should be reported on line 8 of a T3 Trust Income Tax and Information Return (T3 Return).

Calculate the rental income of the person who died

Calculate the rental income of the person who died using the accrual or cash methods. Refer to the T4036 Rental Income guide for further details.

The calculation is completed in Form T776, Statement of Real Estate Rentals, which should be attached to a Final Return for income before the death or T3 Return for income after the death.

Capital Cost Allowance (CCA) recapture or terminal loss

If you ever claimed CCA deductions on the rental property, you will need to calculate your recapture of CCA or terminal loss for the Final Return. Refer to recapture of capital allowance and terminal loss.