T776 rental expenses: what Canadian landlords can deduct
Last updated: November 1, 2026
Canadian landlords report rental income and expenses on CRA Form T776, Statement of Real Estate Rentals. Extra services such as cleaning, security, or meals may make your rental operation a business. If it is a business, use Guide T4002 instead.
Common rental expense lines on Form T776
You can claim only reasonable expenses you incurred to earn rental income, not personal costs.
| T776 line | What it covers |
|---|---|
| 8521 Advertising | Rental advertising, including Canadian newspapers, TV and radio, and finder's fees |
| 8690 Insurance | Premiums on the rental property for the current year |
| 8710 Interest and bank charges | Interest on money borrowed to buy or improve the rental, and interest paid to tenants on deposits |
| 8810 Office expenses | Small items such as pens, paper, and stamps. Furniture and equipment are capital |
| 8860 Professional fees | Legal fees to prepare leases or collect overdue rent, and bookkeeping and audit fees |
| 8871 Management and administration fees | Amounts paid to manage the property, and to agents who collect rent or find tenants |
| 8960 Repairs and maintenance | Labour and materials for minor repairs and maintenance, but not your own labour |
| 9060 Salaries, wages, and benefits | Amounts paid to superintendents, maintenance staff, and others you employ |
| 9180 Property taxes | Taxes for the period the property was available for rent |
| 9200 Travel | Travel costs that meet the vehicle and travel rules below |
| 9220 Utilities | Utilities such as gas, oil, electricity, water, and cable, if your rental arrangement says you pay them |
| 9270 Other expenses | Rental costs not on another line, such as landscaping and your share of condo fees for current expenses |
| 9281 Motor vehicle expenses (not including CCA) | Vehicle costs that meet the rules below |
Motor vehicle and mileage expenses
Guide T4036 gives no flat per-kilometre rate for line 9281. For qualifying trips, multiply your reasonable vehicle costs by eligible rental kilometres divided by total kilometres. Keep receipts and a mileage log. Parking for qualifying rental trips and supplementary business insurance are not reduced by this percentage. Interest and leasing costs on passenger vehicles are capped. Guide T4002 explains the calculation.
With one rental property, reasonable vehicle expenses qualify only if you receive income from it, it is in the general area where you live, you personally do some or all of the necessary repairs and maintenance, and you transport tools and materials there. Collecting rent does not qualify.
With two or more rental properties, in at least two different sites away from your principal residence, you can also deduct reasonable vehicle expenses for collecting rent, supervising repairs, and managing the properties.
Line 9200 covers other travel costs of getting to your rental, under the same rules. You can't deduct board and lodging.
Repairs vs. capital expenses
Repairs that restore an existing rental to its original condition are generally current expenses, deductible in the year you incur them. Improvements and separate assets, such as a new refrigerator, are capital expenses. So is work needed to make a newly acquired used property suitable to rent. Interest, property taxes, and other costs during construction have special rules.
You may claim capital cost allowance (CCA) on depreciable assets over several years, but it can't create or increase your overall rental loss. A loss from other expenses you incurred to earn income can generally offset your other income.
Costs deducted over several years
Qualifying fees to get a loan to buy or improve your rental are generally deducted over five years. If you repay the loan sooner, remaining fees may be deductible then. Prorate lump-sum interest and mortgage prepayment penalties over the rest of the original term. For multi-year insurance, deduct only the current year's premium.
What you can't deduct
You can't deduct mortgage principal, land transfer tax, the value of your own labour, or penalties on your notice of assessment. Interest on money you use for personal purposes doesn't qualify, even if the loan is secured by the rental. Legal fees for buying the property are added to its cost.
If you rent out part of your home, costs only for the rented area are fully deductible. For shared costs, deduct only the rented share: renting 4 of 10 rooms means 40%. A personal cost-sharing arrangement doesn't qualify for rental deductions.
For a residential property rented or offered for rent for less than 90 consecutive days, expenses are reduced for periods when operating it is prohibited or required registration, licences, or permits are missing. Form T776 has a chart for the calculation.
How long to keep rental receipts
Generally, keep them for six years from the end of the tax year they relate to. Don't send them with your return, but the CRA may deny expenses you can't support.
Track rental expenses in RentBooks
RentBooks records expenses by category and stores receipts as property documents. Export your annual report as a PDF with T776 line numbers or a CSV with category totals. Its totals are what you recorded, so check eligibility, timing, and adjustments before completing T776. RentBooks has no category for line 9060, and it does not file your return.
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This is general information, not tax advice, based on the 2025 revision of Guide T4036. It doesn't cover every rule.