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Statement of Real Estate Rentals
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- Use this form if you own and rent real estate or other property. It relates mainly to renting real estate but also covers some other types of rental property such as farmland. This form will help you determine your gross rental income, the expenses you can deduct, and your net rental income or loss for the year.
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To determine whether your rental income is from property or a business, consider the number and types of services you provide for your tenants:
- If you rent space and only provide basic services such as heating, lighting, parking, laundry facilities, you are earning an income from renting property.
- If you provide additional services such as cleaning, security and meals, you may be conducting a business.
- For more information about how to determine if your rental income comes from property or a business, see Interpretation Bulletin IT-434, Rental of Real Property by Individual, and its Special Release.
- If you are a co-owner of a property, you have to determine if a partnership exists before filling in the Identification part below. To determine if you are in a partnership, see Income Tax Folio S4-F16-C1, What is a Partnership?
- For information on how to fill out this form, see Guide T4036, Rental Income.
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Area A - Calculation of capital cost allowance (CCA) claim
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If you have a negative amount in column 7, add it to income as a recapture under "Recaptured capital cost allowance" on line 9947. If no property is left in the class and there is a positive amount in the column, deduct the amount from your income as a terminal loss under "Terminal loss" on line 9948.. Recapture and terminal loss do not apply to a Class 10.1 property unless it is a DIEP. For more information, read Chapter 3 of Guide T4036. |
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Sole proprietors and partnerships - Enter the total CCA claim for the year from amount ii on line 9936.
Co-owners - Enter only your share of the total CCA claim for the year from amount ii on line 9936. |
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For information on CCA for "Calculating business-use-of-home expenses," see "Special situations" in Chapter 4 of Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income. To help you calculate the CCA, see the calculation charts in Areas B to G. |
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Note 1: |
Columns 4, 6, 8 and 9 apply only to designated immediate expensing properties (DIEPs). See subsection 1104(3.1) of the federal Income Tax
Regulations for definitions. A DIEP is a property that you acquired after December 31, 2021, and that became available for use in the current year. For
more information, see Guide T4036. |
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Note 2: |
The proceeds of disposition of a zero-emission passenger vehicle (ZEPV) that has been included in Class 54, or a passenger vehicle bought after
April 18, 2021, that has been included in Class 10.1, and whose cost is more than the prescribed amount will be adjusted based on a factor equal to its
prescribed amount as a proportion of the actual cost of the vehicle. For dispositions after July 29, 2019, you will have to adjust the actual cost of the vehicle
for any payments or repayments of government assistance that you may have received or repaid for the vehicle. If the passenger vehicle in Class 10.1 is
not designated for immediate expensing treatment, this special rule does not apply. For more information on proceeds of disposition and prescribed
amounts, read "Class 10.1 (30%)" and "Class 54 (30%)" in Guide T4036. |
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Note 3: |
The amount you enter in column 8 must not be more than the amount in column 7. If the amount in column 7 is negative, enter "0." |
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Note 4: |
The immediate expensing applies to DIEPs included in column 8.
The total immediate expensing amount for the tax year (total of column 9) is limited to the lesser of:
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the immediate expensing limit, which is equal to one of the following, whichever is applicable:
- $1.5 million, if you are not associated with any other eligible person or partnership (EPOP) in the tax year
- amount iv of Area G, if you are associated with one or more EPOPs in the tax year
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zero, if you are associated with one or more EPOPs and an agreement that assigns a percentage to one or more of the associated EPOPs was not filed with the minister in a prescribed form
- any amount allocated by the minister under subsection 1104(3.4) of the Regulations
- the UCC of DIEPs in column 8
- the amount of income, if any, earned from the source of income that is a property (before any CCA deductions) in which the relevant DIEP is used for the tax year
For more information, see Guide T4036. |
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Note 5: |
Columns 11, 13 and 14 apply only to accelerated investment incentive properties (AIIPs) (see subsection 1104(4) of the federal Income Tax
Regulations for the definition), zero-emission vehicles (ZEVs), ZEPVs and other eligible zero-emission automotive equipment and vehicles that
become available for use in the year. In this chart, ZEVs represent ZEVs, ZEPVs and other eligible zero-emission automotive equipment and vehicles.
An AIIP is a property (other than a ZEV) that you acquired after November 20, 2018, and that became available for use before 2028. A ZEV is a motor
vehicle included in Class 54 or 55 that you acquired after March 18, 2019, and that became available for use before 2028, or eligible zero-emission
automotive equipment and vehicles included in Class 56 acquired after March 1, 2020, and that became available for use before 2028. For more
information, see Guide T4036. |
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Note 6: |
The relevant factors for properties available for use before 2024 are 2 1/3 (Classes 43.1, 54 and 56), 1 1/2 (Class 55), 1 (Classes 43.2 and 53), 0 (Classes 12, 13, 14 and 15) and 1/2 for the remaining AIIPs. |
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| For more information on AIIPs, CCA, ZEVs and ZEPVs, see Guide T4036 or go to canada.ca/taxes-accelerated-investment-income. |
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List all equipment or other property you acquired or improved in the current tax year, and group them into the appropriate classes. Equipment includes appliances such as a washer and dryer; maintenance equipment such as a lawn mower or a snow blower; and other property such as furniture and some fixtures you acquired to use in your rental operation.
Area B - Equipment additions in the year
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List all building or leasehold interest additions you acquired or improved in the current tax year. Group the depreciable property you own into the appropriate classes.
Area C - Building additions in the year
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Area D - Equipment dispositions in the year
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Area E - Building dispositions in the year
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Area F - Land additions and dispositions in the year
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Area G - Agreement between associated eligible persons or partnerships (EPOPs)
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