T776 form: Report your rental income and expenses easily

Published Saturday 31 January 2026

Table of contents

• What is Form T776?
• Who should complete Form T776?
• How to get Form T776
• The parts of Form T776
• Streamline your rental property accounting
• FAQs on Form T776

Key takeaways

• Complete Form T776 each tax year if you earn any rental income from properties, including houses, apartments, or even single rooms in your home.
• Deduct reasonable expenses incurred to earn rental income such as advertising, property taxes, utilities, insurance, and repairs, but avoid non-deductible items like mortgage principal payments and land transfer taxes.
• Calculate personal-use property deductions carefully by claiming 100% of expenses for rental-only areas and the appropriate percentage of shared expenses based on the rental portion of your property.
• Report foreign rental property income on Form T776 in Canadian dollars and complete Form T1135 if your specified foreign property costs exceed $100,000 at any time during the year.

What is Form T776?

Form T776 is the official Canadian tax form for reporting rental property income and expenses. Also called the Statement of Real Estate Rentals, this form is required by the Canada Revenue Agency (CRA) for anyone earning rental income. It declares both individual and partnership rental income for tax purposes.

Form T776 applies to:

• Property owners earning rental income
• Co-owners and partners in rental properties
• Self-employed individuals with rental properties

Rental income includes:

• Rent from houses, apartments, or rooms
• Basic services like heat, parking, and laundry

Business income (requires T2125 form instead) includes additional services like cleaning and meals. The more services you provide, the more likely you have business income rather than rental income.

If you have business income, you must complete the T2125 form ( TP-80-V in Quebec). This is the Statement of Business or Professional Activities.

Who should complete Form T776?

Anyone earning rental income must complete Form T776 each tax year. This includes property owners who rent out entire buildings, individual units, or even single rooms in their home.

How to get Form T776

You can get a copy of Form T776 directly from the Canada Revenue Agency (CRA) website. The form is available as a fillable PDF that you can download and complete on your computer. If you prefer a paper copy, you can also order one online or by phone to be mailed to you.

The parts of Form T776

Form T776 has four main parts:

• Part 1: Identification
• Part 2: Details of co-owners and partners
• Part 3: Income
• Part 4: Expenses

Plus six additional areas for capital costs:

• Area A: Capital Cost Allowance (CCA) calculation
• Area B: Equipment additions during the year
• Area C: Building additions during the year
• Area D: Equipment dispositions during the year
• Area E: Building dispositions during the year
• Area F: Land additions and dispositions during the year

Part 1: Identification

Part 1 collects your basic identification details required for tax processing. Include the following information:

• Personal details: Name, address, and Social Insurance Number
• Tax year: Current fiscal year
• Business numbers: Partnership business number or RZ account number
• Optional: Tax shelter identification number (if applicable), which is a 6-digit number found on your T5013 slip
• Preparer information: Name and address of anyone completing the form on your behalf

Part 2: Details of the co-owners and partners

You should complete this section if you have partners or co-owners. Up to three partners can be included. You include the following information:

• Name and address of partners or co-owners
• Net rental income (or loss)
• Ownership percentage

Part 3: Income

On Form T776, you list the addresses and number of units of each rental property and the income from them. You can use either the accrual method or the cash method of accounting to calculate income. However, the CRA prefers the accrual method and allows the cash method in certain circumstances. One such circumstance is if using the cash method results in the same figures as the accrual method.

Income can be received as cash, cheques, in kind, or as services. Gross rent includes any rent that was paid for in cash or cheque.

Other income includes rent for which you are paid in kind or as services. For example, someone might clean your home in exchange for rental space. In this section, include the fair market value of the in kind or services. Fair market value refers to the highest dollar price a service would sell for in an open market.

Other income also includes premiums, leases and sharecropping. Finally, tax credits are included in this section.

Line 8299 is your total gross rental income. This is your gross rent plus other income.

Part 4: Deductible expenses

You can deduct reasonable expenses incurred to earn rental income, including:

• Operating costs: Advertising, office expenses, professional fees
• Property costs: Property taxes, utilities, and motor vehicle expenses, for which the maximum deductible automobile leasing costs increased to $1,050 per month for new leases entered into after 2023
• Capital expenses: Equipment and building improvements

These expenses are not deductible:

• Land transfer taxes
• Mortgage principal payments
• Value of your own labour

Calculating the total for the personal portion

For properties you use personally and rent out, you must separate the rental portion of your expenses from the personal portion.

Personal use properties allow you to deduct expenses only for the rental portion. For instance, if you rent out 4 rooms in a 10-room house, you can deduct 100% of costs for the rented rooms plus 40% of the expenses that relate to the entire building.

Example: If you rent 4 rooms out of 20 total rooms:

• 100% deduction: Expenses for rental rooms only (painting, repairs)
• 20% deduction: Shared expenses for the whole house (insurance, utilities)

Other lines include:

• net income (or loss) for all co-owners and partners before any adjustments
• other expenses of the co-owners and partners
• recaptured capital cost allowance
• terminal loss
• goods and services tax (GST) / harmonized sales tax (HST) rebate

Streamline your rental property accounting

Keeping track of rental income and expenses can feel overwhelming, especially when tax season arrives. Juggling receipts, spreadsheets, and bank statements takes time away from managing your properties. Using accounting software helps you stay organized and prepared.

Xero simplifies your rental property finances by automating how you track income and expenses. Connect your bank accounts, categorize transactions, and see your financial position in real time. This makes filling out your T776 form easier and gives you the confidence that your records are accurate.

Start a free trial to see how you can run your properties, not your books.

FAQs on Form T776

Here are answers to some common questions about the T776 form.

What expenses can I deduct from my rental property income?

You can deduct any reasonable expense incurred to earn rental income, including:

• Marketing costs: Advertising to find tenants
• Property maintenance: Insurance, repairs, and upkeep
• Travel expenses: Visiting remote rental properties
• Legal costs: Lease preparation and debt collection fees

Can I claim expenses incurred on work on an immovable object in Quebec?

Yes. In such a case, complete form TP-1086.R.23.12-V Costs Incurred for Work on an Immovable, and attach that to your income tax return. You must provide information on every person who carried out the work unless the work was done by a government body, your employee, or an operator of a gas, telecommunications or electricity distribution.

Do I complete Form T776 if I earn rental income from an overseas rental property?

Yes, you must complete Form T776 for all rental income, including foreign properties.

Requirements for foreign rental properties:

• Currency: Report all amounts in Canadian dollars
• Additional filing: Complete Form T1135 if at any time during the year you own specified foreign property costing more than $100,000.