CRA Rental Income in Calgary: What You Need to Know

Tax Headaches

Renting out a property in Calgary? The extra income is great, but dealing with the Canada Revenue Agency (CRA) can be a headache if you're not prepared. At Tax Headaches, we help landlords understand their tax obligations and maximize their deductions related to CRA Rental Income Calgary. Here’s everything you need to know about reporting rental income to the CRA.

What Counts as Rental Income?

If you rent out a house, condo, basement suite, or even a short-term Airbnb, the CRA considers this taxable rental income. This includes:

• Monthly rent payments

• Security deposits (if kept)

• Any extra payments from tenants (utilities, parking, etc.)

Reporting Rental Income Correctly

Rental income must be reported annually on your tax return using Form T776 (Statement of Real Estate Rentals). Failing to report rental income can lead to penalties, interest, or an unwanted audit from the CRA.

Deductible Expenses for Landlords

Good news! You can reduce your taxable rental income by claiming certain expenses, including:

• Mortgage interest (not the principal)

• Property taxes

• Utilities (if you cover them for tenants)

• Repairs & maintenance

• Property management fees

• Home insurance

• Advertising costs (for rental listings)

What About Depreciation (CCA)?

You may be able to claim Capital Cost Allowance (CCA) to account for property depreciation, but beware—claiming CCA can affect future capital gains taxes when you sell the property.

Short-Term Rentals & GST/HST

If you're renting through Airbnb or other short-term platforms, you may need to charge and remit GST/HST if your rental income exceeds $30,000 annually.

Avoiding CRA Audits

To stay on the CRA’s good side:

• Keep detailed records of rental income and expenses

• Separate personal and rental property expenses

• Report all rental income honestly

• File taxes on time to avoid penalties

Need Help? Tax Headaches Has You Covered!

Dealing with CRA rental income rules can be overwhelming, but you don’t have to do it alone. At Tax Headaches, we specialize in tax solutions for landlords in Calgary. Whether you need help with tax filing, deductions, or CRA disputes, we’re here to help!

???? Contact us today to take the stress out of rental income taxes.