T776 Forms: 1  
Federal forms: 

Protected B when completed
 
  Statement of Real Estate Rentals  
 
  • 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.
  • 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.

Part 1 - Identification
                       
Your name Demo EachTax    Your social insurance number    123456789
Business name   Business number (15 characters)  
Business address   City, province or territory   Postal code
   
Fiscal period
From:
  To:   Was 2023 the final year of your rental operation?   Yes  No
Account number (15 characters)     Industry code  
Tax shelter identification number     Partnership business number (9 digits)  
Accounting method Cash  Accrual   Your percentage of ownership   %
Name of preparer  
Address of preparer  
 

Part 2 - Details of other co-owners and partners (Do not enter information of yourself.)
 
Last name First name Address Share of net income
or (loss) $
Percentage of
ownership
(%)
 

Part 3 - Income In most cases you calculate your rental income using the accrual method. If you have no amounts receivable and no expenses outstanding at the end of the year, you can use the cash method.

 
List the addresses of your rental properties
(List the property that generates most rents first.)
Number of units Gross rents
Street No Street name
City Prov./Terr. Postal code
Total
                   
                   
Enter the total of your gross rents (see line above) 8141
Other income (for example, premiums and leases, sharecropping) 8230
Total gross rental income - Enter this amount on your income tax and benefit return on line 12599 (line 8141 plus line 8230) 8299
 
 

2
  Protected B when completed

Part 4 - Expenses
                 
    Total expenses Personal portion
Advertising 8521
Insurance 8690
Interest and bank charges 8710
Office expenses 8810
Professional fees (includes legal and accounting fees) 8860
Management and administration fees 8871
Repairs and maintenance 8960
Salaries, wages, and benefits (including employer's contributions) 9060
Property taxes 9180
Travel 9200
Utilities 9220
Motor vehicle expenses (not including capital cost allowance) 9281
Other expenses 9270
  Total expenses (add the amounts listed under "Total expenses")  A 
  Total for personal portion (add the amounts listed under "Personal portion") 9949
 
Deductible expenses (total expenses from amount A minus total personal portion from line 9949)  4 
Net income (loss) before adjustments (total gross rental income from line 8299 minus deductible expenses from amount 4) 9369
Co-owners: calculate your share of net income from line 9936. Enter your result on amount 5  5 
Minus:
Co-owners: other deductible expenses you have as a co-owner which you did not deduct elsewhere
9945
Subtotal (amount 5 minus line 9945)  6 
Plus:
Recaptured capital cost allowance (co-owners: enter your share of the amount).
9947
Subtotal (amount 6 plus line 9947)  7 
Minus:
Terminal loss (co-owners: enter your share of the amount).
9948
Subtotal (amount 7 minus line 9948)  8 
Minus:
Total capital cost allowance claim for the year (amount ii from Area A)
9936
Net income (loss) (amount 8 minus line 9936)
If you are a sole proprietor or a co-owner, enter this amount on line 9946.
 9 
 
Partnerships
Partners: your share of the amount 9, or the amount from your T5013 slip, Statement of Partnership Income
 10 
Plus:
Partners: GST/HST rebate for partners received in the year
9974
Minus:
Partners: other expenses of the partner
9943
 
Your net income (loss): For sole proprietors or co-owners, the result of amount 9. For partnerships, the result of amount 10 plus line 9974 minus line 9943. Enter this amount on line 12600 of your income tax and benefit return. 9946
 

3
  Protected B when completed
Area A - Calculation of capital cost allowance (CCA) claim
Software Note
  • Please enter only one entry per each class (number).
  • If there are equipment/building additions/dispositions in Area B, C, D and E, please ensure there is one (and only one) entry in Area A with matching class number for each class number in Area B, C, D and E. The software calculates based on matching class numbers.
  • To claim less than the calculated CCA, please override the calculated amount in column 18 per each class in Area A.

1
Class number
2
Undepreciated capital cost (UCC) at the start of the year
3
Cost of additions in the year
(see Areas B and C below)
4
Cost of additions from column 3 that are DIEPs (property must be available for use in the year)
Note 1
5
Proceeds of dispositions in the year
(see Areas D and E below)
Note 2
6
Proceeds of dispositions of DIEP (enter amount from col. 5 that relates to DIEP from col. 4)
7**
UCC after additions and dispositions
(col. 2 plus col. 3 minus col. 5)
8
UCC of DIEP (col. 4 minus col. 6)
Note 3
9
Immediate expensing amount for DIEPs
Note 4
10
Cost of remaining additions after immediate expensing (col. 3 minus col. 9)
 
Total immediate expensing claim for the year: Total of column 9  i 

11
Cost of remaining additions from column 10 that are AIIPs or ZEVs
Note 5
12
Remaining UCC after immediate expensing (col. 7 minus col. 9) If negative, enter "0"
13
Proceeds of dispositions available to reduce additions of AIIPs and ZEVs (col. 5 minus col. 10 plus col. 11). If negative, enter "0"
14
UCC adjustment for current-year additions of AIIPs and ZEVs (col. 11 minus col. 13) multiplied by the relevant factor. If negative, enter "0"
Note 6
15
Adjustment for current year additions subject to the half-year rule.
1/2 multiplied by (col. 10 minus col. 11 minus col. 5).
If negative, enter "0"
16
Base amount for CCA
(col. 12 plus col. 14 minus col. 15)
17
CCA
rate
%
18
CCA for the year
(col. 16 multiplied by col. 17 or a lower amount, plus col. 9)
19
UCC at the end of the year
(col. 7 minus col. 18)
 
Total CCA claim for the year**  ii 
Personal part of the CCA and any CCA for business-use-of-home expenses***  -
Business part of the CCA claim for the year (enter the amount on line 9936 of Part 4)  =
* 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.
** 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.
*** 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.
       

 

4
  Protected B when completed
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.
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.
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."
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:
  • 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
    • 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.
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.
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.
 
For more information on AIIPs, CCA, ZEVs and ZEPVs, see Guide T4036 or go to canada.ca/taxes-accelerated-investment-income.
       

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
1
Class number
2
Property description
3
Total cost
4
Personal part
(if applicable)
5
Business part
(column 3 minus column 4)
 
Total equipment additions in the year (total of column 5) 9925

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
1
Class number
2
Property description
3
Total cost
4
Personal part
(if applicable)
5
Business part
(column 3 minus column 4)
 
Total building additions in the year (total of column 5) 9927


Area D - Equipment dispositions in the year
1
Class number
2
Property description
3
Proceeds of disposition
(should not be more than the capital cost)
4
Personal part
(if applicable)
5
Business part
(column 3 minus column 4)
 
Total equipment dispositions in the year (total of column 5) 9926
 

5
  Protected B when completed
Area E - Building dispositions in the year
1
Class number
2
Property description
3
Proceeds of disposition
(should not be more than the capital cost)
4
Personal part
(if applicable)
5
Business part
(column 3 minus column 4)
 
Total building dispositions in the year (total of column 5) 9928

Area F - Land additions and dispositions in the year
Total cost of all land additions in the year 9923
Total proceeds from all land dispositions in the year 9924
         

Area G - Agreement between associated eligible persons or partnerships (EPOPs)
 
Are you associated in the fiscal period with one or more EPOPs that you have entered into an agreement with under subsection 1104(3.3) of the Regulations? Yes  No
 

If you answered yes, fill in the table below.

Enter the percentage assigned to each associated EPOP (including your business) as determined in the agreement.

This percentage will be used to allocate the immediate expensing limit. The total of all percentages assigned under the agreement should not be more than 100%. If the total is more than 100%, then the associated group has an immediate expensing limit of zero. For more information about the immediate expensing limit, see Guide T4002.

       
1
Name of the EPOP
2
Identification number
Note 7
3
Percentage assigned under the agreement
(%)
 
Total of percentage assigned: Total of column 3 
       
Immediate expensing limit allocated to your business: Multiply 1.5 million by the percentage assigned to your business in column 3 (see note 8) . iii
         
 
Note 7: The identification number is the EPOP's social insurance number, business number or partnership account number.
Note 8: If the total of column 3 is more than 100%, enter "0".