What is the T776?
The T776 (Statement of Real Estate Rentals) is the CRA form you file every year as a Canadian landlord. It calculates your net rental income by subtracting eligible expenses from your gross rental income. You file it as part of your personal T1 tax return. If you have multiple properties, you complete one T776 per property.
Who needs to file it?
You need to file a T776 if you earned rental income from:
- A house, condo, or apartment you rent out
- A basement suite or secondary unit
- A vacation property rented to others
- Land you lease to tenants
Even if you lost money on your rental property, you still file. A net loss can offset your other income.
Rental income (what to report)
Report everything you received from tenants:
- Monthly rent payments
- Late payment fees
- Parking and storage fees
- Any services tenants pay you for
Do not report damage deposits until you keep them.
Eligible expenses (what you can deduct)
| Expense category | Examples |
|---|---|
| Advertising | Kijiji listings, rental site fees |
| Insurance | Landlord/property insurance premiums |
| Interest | Mortgage interest (not principal) |
| Maintenance & repairs | Plumber, electrician, contractor |
| Management fees | Property manager fees |
| Motor vehicle | Driving to your rental for repairs |
| Office expenses | Printer, paper, software |
| Legal & accounting | Lawyer, accountant fees |
| Property taxes | Municipal property tax bills |
| Salaries | If you pay someone to help manage |
| Travel | If you travel to your rental property |
| Utilities | Heat, hydro, water if you pay them |
| Other expenses | Locksmith, cleaning, landscaping |
What you cannot deduct: mortgage principal payments, personal expenses, land value, or the value of your own labour.
Capital expenses vs. current expenses
Current expense
Maintains your property in its current condition. Fully deductible this year.
Example: fixing a broken furnace
Capital expense
Improves the property beyond its original condition. Must be depreciated over time (CCA).
Example: replacing the entire roof or adding a new bathroom
When in doubt, ask your accountant.
Common mistakes to avoid
- Claiming mortgage principal as an expense
- Forgetting small receipts: advertising fees, locksmith visits, and cleaning supplies all add up
- Mixing personal and rental expenses
- Missing the co-ownership split if you own with a partner
- Not tracking the rental portion if you rent part of your home
Stop tracking expenses in spreadsheets
Akre categorizes your rental expenses in real time, organized by T776 category and ready for your accountant at year end.
Try Akre freeFAQ
Do I need an accountant to file the T776?
No. Many landlords file it themselves. But if you have multiple properties, capital expenses, or a home office, an accountant is worth it.
What if I also use the property personally?
You can only deduct the portion of expenses that relate to the rental use. If you rent out 40% of your home, you can deduct 40% of eligible shared expenses.
Where do I get the T776 form?
Download it directly from canada.ca or use tax software like TurboTax or SimpleTax. Both include the T776.