You can deduct reasonable expenses incurred to earn your rental income. If you rent out part of your home, you can only claim the portion of expenses that relate to the rented part.
To calculate the part you can deduct, take the area of the rental space divided by the total area of your home. Multiply that amount by the percentage of time the space was rented in the year, then by the total amount of each expense you’re claiming.
Common deductible rental expenses include:
- Supplies, such as bedding and toiletries
- Insurance
- Interest and bank charges
- Professional fees, including legal and accounting fees
- Repairs and maintenance if you hired someone to do the work
- Property taxes
- Travel needed to collect rent, supervise repairs, or manage your properties
- Utilities
- Prepaid expenses
For information about CCA Class 12, please review the link below from TurboTax Canada.
Common Depreciable Property Classes
If you are using TurboTax Online, you can follow the steps below.
Be sure to accurately fill out all your personal information and build your tax profile in TurboTax before you begin. These steps outline the process for reporting rental income and expenses on Form T776.
- From the menu, select Find, then enter rental in the search bar
- Select Rental properties from the list, then Go
- Follow the on-screen prompts to complete the applicable information and proceed through your return
- You’ll arrive at the Rental Summary screen. Review your information, then select Done With Rental Income
- You’ve now claimed your rental income and expenses
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