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It also details possible deductions, distinguishing capital from current expenses and explaining capitalization, multi-year treatment, and depreciation via CCA.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/healthcare/","Healthcare",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/landlords-income-tax-considerations-for-rental-properties/488886/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/landlords-income-tax-considerations-for-rental-properties/488886.png","ImageObject",300,407,{"name":42,"@type":43},"aboduw","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-31","2026-10-01",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",6,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"When is rental income treated as property income instead of business income?","Question",{"text":63,"@type":64},"Rental income is treated as property income when basic services are provided, such as utilities, parking, and laundry. If additional services like cleaning, security, and/or meals are provided, it may be considered business income.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"What amounts must be included in rental income for tax purposes?",{"text":68,"@type":64},"Include all amounts paid to you as rent, including income earned by renting your home through services such as Airbnb. If goods or services are received instead of rent, include their fair market value. Amounts for lease extensions, subleases, or lease cancellations are also included.",{"name":70,"@type":61,"acceptedAnswer":71},"How are capital expenses and current expenses treated when claiming deductions?",{"text":72,"@type":64},"Capital expenses provide long-lasting benefits and are generally added to the property’s cost and deducted over multiple years. Current expenses provide short-term benefits and are generally deductible in the year they arise, such as repairs to restore a property to its purchased condition.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},488886,1791411198,{"code":4,"msg":82,"data":83},"success",[84,88,92,96,101,105,109,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":93,"show_sort_weight":94,"slug":95},"Exam",70,"exam",{"id":97,"doc_module":4,"doc_module_name":25,"category_name":98,"show_sort_weight":99,"slug":100},5,"Comic",60,"comic",{"id":55,"doc_module":4,"doc_module_name":25,"category_name":102,"show_sort_weight":103,"slug":104},"Technology",50,"technology",{"id":106,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":107,"slug":108},7,40,"healthcare",{"id":110,"doc_module":4,"doc_module_name":25,"category_name":111,"show_sort_weight":112,"slug":113},8,"Research & Report",30,"research-report",{"id":115,"doc_module":4,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},9,"Religion & Spirituality",20,"religion-spirituality",{"id":117,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":117,"slug":121},"World Cup","world-cup",{"id":123,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":123,"slug":125},10,"Lifestyle","lifestyle",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":97,"slug":129},19,"General","general",{"code":4,"msg":82,"data":131},{"doc_id":79,"user_id":132,"nickname":42,"user_avatar":133,"doc_module":4,"category_id":106,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":110,"language":139,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":12,"update_tm":143,"read_time":117,"preview_page_count":4},3985747862266,"https://ap-avatar.wpscdn.com/davatar_085a072bc5b1113ac321206ff7593b45","So…you wanna be a landlord?  \nIncome tax considerations for rental properties  \nMay 2025  \nJamie Golombek and Debbie Pearl-Weinberg  \nTax and Estate Planning, CIBC Private Wealth  \nConsidering becoming a landlord? You’re not alone. According to a CIBC poll, more than one in four Canadian homeowners are either already landlords (15%) or plan to earn rental income (11%) by renting out space in their primary residence or from a separate rental property. And, nearly two in five (37%) homeowners say they’d opt for a home with a source of rental income if buying a home today.  \nWhile there are many financial and legal issues to consider as a landlord, make sure that you don’t overlook tax considerations of earning rental income. Whether you’re purchasing a residential or commercial property for the purpose of leasing it out, or you are considering renting your home or part of your home, this report highlights some of the more common tax issues you should consider before taking the plunge!  \nRental property or business?  \nThe first question you need to consider is whether the rental income you earn will be treated as income from property (i.e. investment income) or as income from a business, since each has different tax implications. When you rent out real estate, your income is treated as property income if you provide only basic services, such as utilities (e.g. light and heating), parking and laundry facilities. If you provide additional services, such as cleaning, security and / or meals, then it may be considered a business.  \nIf your corporation owns the property, then rental income will be treated as income from property unless the corporation has more than five full-time employees. This is important because active business income in a corporation is taxed at a more favourable rate than income from property.  \nIn this report, we assume that you own the real estate personally and earn property income, unless otherwise stated.  \nWhat do you need to include in your rental income?  \nA third of all landlords who own a separate rental property say their top reason to invest is to generate income now (15%) or upon retirement (19%) . You need to include all amounts that are paid to you as rent, including income earned by renting your home through services such as Airbnb. As well, if you receive goods or services instead of rent, the fair market value of the goods or services must be included. For instance, if your tenant offers to plow your parking lot in exchange for a reduction of rent, you would need to include the value of the snow plowing as “other related income”when reporting your rental income. If you receive an amount for alease extension, a sublease or a lease cancellation, they are also included in this category.  \nMost people report rental income on an “accrual basis” ‒ they include the income in the year it is receivable and deduct expenses in the year they are incurred.  \nIn certain cases you can deduct uncollectible rent from your income. This is considered a “bad debt” for tax purposes. To claim the deduction, you must have previously included the amount in your income and the amount must have become uncollectible during the year. You should have proof that it is uncollectible. For instance, you might have received a notice if the tenant has gone bankrupt, or be able to show that you tried collecting the rent but were unsuccessful. If you later receive a payment on the bad debt, then you will later have to include that amount in income again.  \nWhat expenses can you claim?  \nThe CIBC Landlord poll found that most (74%) homeowners believe that even with a negative cash flow, the tax deductions can help make an income property a worthy investment. It is important, however, to understand whether expenses are properly deductible for tax purposes.  \nThere are many expenses that you can deduct against your rental income, so long as they are reasonable. Expenses are divided into two categories: capital expenses and current ex","cbCaivh1yyJEfsbo","https://ap.wps.com/l/cbCaivh1yyJEfsbo","pdf",397163,"English","# Rental property or business?\n# What do you need to include in your rental income?\n# What expenses can you claim?\n## Capital expenses\n## Current expenses\n## Example: painting vs replacing siding","[{\"question\":\"When is rental income treated as property income instead of business income?\",\"answer\":\"Rental income is treated as property income when basic services are provided, such as utilities, parking, and laundry. If additional services like cleaning, security, and/or meals are provided, it may be considered business income.\"},{\"question\":\"What amounts must be included in rental income for tax purposes?\",\"answer\":\"Include all amounts paid to you as rent, including income earned by renting your home through services such as Airbnb. If goods or services are received instead of rent, include their fair market value. Amounts for lease extensions, subleases, or lease cancellations are also included.\"},{\"question\":\"How are capital expenses and current expenses treated when claiming deductions?\",\"answer\":\"Capital expenses provide long-lasting benefits and are generally added to the property’s cost and deducted over multiple years. Current expenses provide short-term benefits and are generally deductible in the year they arise, such as repairs to restore a property to its purchased condition.\"}]","Landlords - Income Tax Considerations for Rental Properties | PDF",1790818700]