Can I offset employment income from rental propert...

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New Member

Can I offset employment income from rental property income (CCA) in a sole proprietor business that is on my t1 tax return?

Capital cost allowance on a rental property to off set my employment income on my t1 tax return?

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Moderator

Can I offset employment income from rental property income (CCA) in a sole proprietor business that is on my t1 tax return?

Probably not. If I understand you correctly, you have Rental Property which you would like to report as Business Income and Employment Income (from a T4 likely).

  • You do not report Rental Income as Self-Employment on a T2125 - Statement of Business Activities
  • Your Rental Income should be reported on a T776 - Statement of Real Estate Rentals. If you have a loss on this statement already, (expenses exceeded income) you cannot use your CCA to create or increase this loss.
  • If you do have a loss on the T776 that is not from CCA, this loss will carry over to the T1 General and be deducted from your Employment Income to arrive at Total Income.
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New Member

Can I offset employment income from rental property income (CCA) in a sole proprietor business that is on my t1 tax return?

What happens if your ex-bookkeeper screws up your books and your ex-accountant screws up your corporate tax return for the last 6 years? I’ll get audited because everything is now done right and I wonder if they we be held liable? Should I get my accountant to slightly move toward putting in the right numbers on my books and taxes so I don’t trigger a tax audit? Thanks
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