Rental Property Income and Expense Checklist

1. Property and ownership records

• Purchase agreement, closing statement, title documents and mortgage documents for the rental property.
• Ownership percentages if the property is co-owned, held jointly or held through a partnership.
• Date the property became available for rent and any date it stopped being used to earn rental income.
• Square footage, unit count and any worksheet used to separate personal-use and rental-use portions.
• Records of change in use, principal residence elections or conversion from personal to rental use.
• Lease agreements, renewal letters and any terms that affect who pays utilities, repairs or taxes.

2. Rental income records

• Rent ledger showing monthly rent charged, received and outstanding.
• Bank statements, e-transfer records and deposit summaries that support all rental receipts.
• Late fees, parking income, storage income, pet fees, laundry income and any other amounts tied to the property.
• Short-term rental platform statements if the property is used for Airbnb, Vrbo or similar hosting.
• Rent abatements, rebates, forgiven amounts or amounts returned to tenants.
• Records showing who reported the income if the property is owned by more than one person.

3. Deductible expense receipts and invoices

• Advertising receipts, listings and promotion costs used to find tenants.
• Insurance statements for the building, contents and landlord-specific coverage.
• Property tax bills for the rental period.
• Mortgage interest, bank charges and loan interest statements.
• Repairs and maintenance invoices for ordinary upkeep, servicing and minor fixes.
• Utilities, condo fees, management fees, legal fees, accounting fees and professional fees.
• Travel logs and vehicle expense records if you drove to collect rent, supervise repairs or manage multiple properties.
• Landscaping, cleaning, snow removal, security, pest control and similar operating expenses.
• Payroll records if you paid staff, superintendents or helpers.
• Receipts for any prepaid expenses that need to be allocated to the correct year.

4. Capital assets, improvements and CCA support

• Invoices for appliances, furnaces, air conditioners, roofing, windows, flooring, fencing and other major improvements.
• Separate records for capital additions versus current repairs.
• Land and building allocation from the purchase or appraisal documents.
• Capital cost allowance schedules, class assignments and undepreciated capital cost balances.
• Disposal records for assets sold, scrapped or replaced during the year.
• Recaptured CCA or terminal loss support where property or assets were disposed of.

5. Special situations to document

• Co-ownership agreements and allocation of income and expenses between owners.
• Partnership records, if the rental activity is carried on through a partnership.
• Non-resident withholding records and any agent remittances, if the owner is not resident in Canada.
• Short-term rental compliance records where local or provincial rules apply.
• Vacancy periods, tenant turnover, lease cancellations and amounts paid to end a lease.
• Any government grants, subsidies, insurance proceeds or rebates related to the property.

6. Final review before filing

• Reconcile gross rent to bank deposits and explain timing differences or outstanding receivables.
• Separate personal-use portions from rental-use portions for every shared expense.
• Confirm that current expenses are not actually capital improvements.
• Confirm that deductible amounts are reasonable in the circumstances.
• Keep receipts, ledgers, statements, contracts and worksheets for at least six years.

Official sources and reference links

This checklist is a preparation aid. Confirm current eligibility, filing duties and documentation with CRA guidance, the applicable legislation or a qualified professional.

• CRA: T4036 Rental Income
• CRA: T776 Statement of Real Estate Rentals
• Income Tax Act: section 9
• Income Tax Act: section 18
• Income Tax Act: section 67
• CRA: Keeping records