T776
Statement of Real Estate Rentals
Who Must File
Canadian residents who own rental property (in Canada or abroad) and earn rental income or incur rental losses during the tax year.
Deadline
Filed with T1 General by April 30 (June 15 for self-employed)
Penalty
No separate penalty; rental income is part of overall T1 filing obligation
Step-by-Step Filing Instructions
List each rental property with its address and ownership percentage.
Calculate gross rental income for each property.
Deduct allowable expenses: mortgage interest, property taxes, insurance, repairs, utilities, management fees.
Calculate Capital Cost Allowance (CCA) if desired (Class 1 for buildings: 4%).
Convert any foreign rental income and expenses to CAD using the Bank of Canada rate.
Complete Form T776 and attach it to your T1 return.
If the property is in the US, claim the foreign tax credit on T2209 for US taxes paid.
Tips & Best Practices
CCA on rental property cannot create or increase a rental loss.
Keep all receipts for 6 years; the CRA frequently audits rental income claims.
Co-owned properties require each owner to report their share of income and expenses.
Report US rental income in CAD even if you also report it in USD on Schedule E.
Frequently Asked Questions
Can I claim CCA to create a rental loss?
No. CCA can only reduce your net rental income to zero. It cannot create or increase a rental loss.
How do I report a US rental property on T776?
Report the income and expenses in Canadian dollars using the Bank of Canada exchange rate. Claim a foreign tax credit for any US tax paid on the rental income.
Do I report my principal residence on T776?
Only if you rent out part of your principal residence. The rented portion is reported on T776 while the personal-use portion is not.
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