How do I enter my rental income and expenses in TurboTax Online?

by TurboTax•36• Updated 1 month ago

Rental income includes income from renting:

Houses
Apartments
Rooms
Space in an office building
Other real or movable property

For more information, visit Claiming Rental Income.

Rules for short-term rentals

Starting January 1, 2024, a property is a non-compliant short-term rental property when:

It’s offered for less than 90 days of continuous rental and
It’s in a province or municipality that:
- Prohibits short-term rentals or
- Requires a registration, license, or permit which the owner doesn't have

There’s a transitional grace-period rule:

A non-compliant property brought ‌into compliance by December 31, 2024, is considered to be compliant for the 2024 tax year.

For any short-term rental property, there’s a disallowance of rental expense deductions from income if there’s any non-compliant rental:

The disallowance is based on the ratio (percentage) of the number of non-compliant short-term rental days to all the days of short-term rental in the year.
That percentage, applied to the amount of rental expenses attributable to all of the short-term rental days, gives us the disallowed rental expense amount.

If you have a short-term rental situation, TurboTax will guide you.

Note: Enter only deductible expenses that you weren't reimbursed for and haven't deducted elsewhere. If you rent out a part of the building that you live in, you can claim only the portion of your expenses that relates to the rented part of the building.

If you received a T5013 slip

Answer the Personal info profile initial interview questions if you haven’t already. This unlocks 2024 tax return
From 2024 tax return, under Add to your return, enter T5013 and select T5013 Partnership Income.
At T5013 - Summary, select Enter new T5013.
Enter the information from the T5013 into the TurboTax T5013 form, including at a minimum:
- Box 001 and Box RZ, the Filer's account number
- Box 005, your partnership share %
- Box 110, Rental Income
Select Done with T5013.

If you didn't receive a T5013 slip

You need to prepare a separate rental statement for each rental property you have. Canadian-source and foreign-source rental income and expenses are reported in the same section of TurboTax Online.

Answer the initial Personal info questions if you haven't already. This unlocks 2024 tax return.
From 2024 tax return, under Add to your return, enter rental.
Select Rental properties. At Rental Profile, select the Rental Income box and all other applicable boxes.
- If your interest in the rental property is either co-ownership or partnership, with no T5013 slip, check the box for Details of Other Owners.
At Real Estate Rentals Statement, enter the identification info.
If you ticked the Details of Other Owners box in step 5, at T776 Partner Details Statement, provide the details for the other(s), then continue.
At T776 Rental Income, enter property particulars and gross income, then select Continue.
At T776 Rental Expenses, enter the expense amounts, selecting Continue after completing each screen.
Based on the boxes you checked in the last step for the Rental Profile, you will be guided through entering the required info for each category. You will eventually arrive at Rental Summary.
At Rental Summary, review the information and:
- If there is another rental property, select Enter New Rental Income and refer to the instruction at step 5.

If the summary is complete and correct, select Done with Rental Income.