2025 Tax Documents Checklist for Real Estate Investors

This checklist covers the most common documents needed to prepare your 2025 personal tax return (T1) as a Canadian real estate investor with residential rental properties. Edge cases, specialized credits, and unusual situations may require additional documents not listed here. It covers traditional long-term rentals, multi-unit residential properties, and short-term rental (STR) operations on platforms such as Airbnb and VRBO. Rental income and expenses are reported on Form T776 (Statement of Real Estate Rentals), separate from business income reported on Form T2125.

Who this is for
Individual Canadian taxpayers who own one or more residential rental properties, including long-term rental landlords, multi-unit residential property owners, and short-term rental operators using platforms such as Airbnb, VRBO, or direct bookings. This checklist applies to properties held personally, not through a corporation or partnership. If your rental portfolio is held in a corporation or partnership, contact us before gathering documents.

Incorporated?
If your rental properties are held inside a corporation, rental income flows through the T2 corporate return, not your personal T1. A separate T2 filing and different rules for the small business deduction, CCA, and distributions apply. Contact us before gathering documents. Note: the Active Business Income test and the specified investment business rules significantly affect how rental income is taxed inside a corporation. These rules are not reflected in this checklist.

Short-term rentals: important note for 2025
Federal and provincial rules for short-term rental expense deductibility have tightened since 2024. Expenses related to short-term rentals may not be deductible if the property is located in a municipality that has prohibited or restricted short-term rentals and the operator is not compliant with local licensing and registration requirements. Flag your property’s municipality and your compliance status during intake before we prepare your return.

First time filing with us?
Include a copy of your 2024 T1 return and your most recent Notice of Assessment. This allows us to carry forward CCA schedules, rental loss carryforwards, and RRSP deduction room accurately.

Not sure whether something on this list applies to you?
Email us before you start gathering. A five-minute question now is better than a revised return later.

Important: This checklist is for intake and planning purposes only. It is not legal or tax advice and does not create a client relationship. Your specific situation may differ from the scenarios described. Contact us to discuss your circumstances before you begin gathering documents.

See our 2025 Tax Return Services

Key CRA and Related References

Form T776: Statement of Real Estate Rentals | T4036: Rental Income Guide | T1 Personal Return | GST/HST and short-term accommodation | CRA important dates | Short-term rental expense restrictions (2024 and onwards)

Filing Deadlines and Submission Window

Key dates for the 2025 tax year:

Balance owing deadline: April 30, 2026. Any amount owed to CRA for 2025 is due April 30 regardless of your filing deadline. Interest begins accruing on unpaid balances after this date.

T1 filing deadline: June 15, 2026 if you or your spouse also have self-employment income on a T2125. If your only income is rental income on T776 and employment income, the standard deadline of April 30, 2026 applies. When in doubt, treat June 15 as your deadline and ensure any balance owing is paid by April 30.

RRSP contribution deadline: March 2, 2026. Contributions made by this date can be deducted on your 2025 return or carried forward.

2025 instalment deadlines: March 15, June 15, September 15, and December 15, 2025. Missed or underpaid instalments result in CRA interest charges that are not deductible. If any due date falls on a Saturday, Sunday, or public holiday, the deadline is the next business day.

Document submission deadline: Submit your complete document package by May 15, 2026. Returns submitted after May 15 cannot be guaranteed to be filed by the June 15 deadline.

Common Mistakes Real Estate Investors Make

These issues appear every year. If any are familiar to your situation, pay extra attention to the relevant section.

• Reporting rental income on a cash basis without making accrual adjustments for rent earned in December and received in January, or rent receivable from a tenant in arrears.
• Claiming capital expenditures (new roof, HVAC replacement, major renovation) as current repairs and maintenance expenses. Capital expenditures are added to the cost of the property or to a CCA class; they are not deducted in full in the year paid.
• Missing or incorrectly calculated CCA. CCA must be claimed by class with the correct rate applied to the correct undepreciated capital cost (UCC) balance, including the half-year rule on new additions.
• Claiming CCA on land. Land is never depreciable; only the building and qualifying improvements are eligible for CCA.
• Not separating land and building values on the original property cost. The CCA calculation requires a reasonable allocation of the purchase price between land (not depreciable) and building (depreciable).
• Claiming personal expenses as rental expenses for a property that is also used personally, without making a proper allocation for the personal-use portion.
• Claiming a rental loss on a property that is rented below fair market value to a related person. CRA limits deductible expenses to the rental income received in below-fair-market-value situations involving related persons.
• Missing the GST/HST registration requirement for short-term rental operators whose total taxable accommodation revenue exceeded CAD $30,000.
• Not tracking STR platform revenue separately from direct booking revenue, and not reconciling platform payouts against gross booking amounts before platform fees.
• Claiming mortgage principal repayments as a rental expense. Only the interest component of mortgage payments is deductible; principal repayment is not.
• Missing the Principal Residence Exemption planning opportunity when a property previously designated as a principal residence is converted to a rental or an STR.
• Not reporting a deemed disposition on a change of use when a property converts from personal use to rental or from rental to personal use.

01. Prior Year Documents

☐ 2024 Notice of Assessment (NOA)

The NOA issued by CRA after your 2024 return was assessed. Contains your RRSP deduction limit, any unclaimed capital or non-capital losses carried forward, and your instalment threshold for 2025.

If you cannot locate your NOA, log in to CRA My Account at canada.ca to access it. If you do not have CRA My Account set up, contact us and we can assist through our representative access.

☐ Copy of 2024 T1 return including all T776 schedules (new clients only)

The full PDF of your filed 2024 personal return including all T776 rental income schedules for every property. Used to carry forward CCA UCC balances, rental losses, and any prior year elections that must be continued.

If your 2024 return was prepared by another accountant, request a copy before transferring to us and confirm it includes the T776 detail for each property, not only the T1 summary page. Without the prior year T776, we cannot accurately carry forward the CCA schedule or confirm prior year loss positions.

☐ Prior-year CCA schedule showing UCC balances by class for each property (new clients only)

If CCA has previously been claimed on any rental property, provide the CCA continuity schedule showing the undepreciated capital cost (UCC) balance by class as of December 31, 2024, for each property separately.

Rental property buildings are typically Class 1 (4% declining balance) for most residential properties, or Class 3 for certain buildings acquired before 1988. The prior-year UCC balance is the essential starting point for the 2025 CCA calculation. Without it, we cannot determine the maximum claimable CCA, identify recapture exposure on a property sale, or calculate terminal loss. Ask your prior preparer specifically for the CCA continuity schedule by property and by class.

☐ Prior-year rental losses carried forward (if applicable)

If you incurred net rental losses in prior years that were not fully applied against other income, confirm the amount of losses available for carry-forward. This amount should be visible on your 2024 NOA or in your prior year T1 return.

Net rental losses can generally be applied against other sources of income in the year incurred. Losses that exceed other income in the year can be carried back three years or forward twenty years. Rental losses are calculated separately on T776 and must be tracked carefully from year to year. If your prior returns show rental losses, provide the relevant schedules so we can confirm the carryforward balance and apply them appropriately in 2025.

☐ 2025 tax instalment payment confirmation

Total amount paid to CRA in 2025 quarterly instalment payments and the date of each payment. Instalment payments are prepayments of your expected 2025 tax liability, due on March 15, June 15, September 15, and December 15.

Real estate investors whose rental income creates a net tax owing above CRA’s threshold are generally required to pay quarterly instalments. If you received instalment reminder notices from CRA but paid different amounts, provide both the notice amounts and the actual payments. This affects any instalment interest calculation. Confirm what CRA received via CRA My Account under Tax instalments. See our guide: Quarterly Tax Instalments for Self-Employed Canadians.

☐ Access to CRA My Account and My Business Account confirmed

Confirm that you have active access to CRA My Account (for personal tax) and CRA My Business Account (if GST/HST registered for short-term rentals) before submitting your document package.

CRA My Account allows you to confirm your RRSP deduction limit, outstanding balances, instalment history, prior year returns, and any correspondence on file. My Business Account confirms your GST/HST account status, filing history, and any outstanding returns.

☐ Any CRA correspondence or reassessments from 2024 or 2025

Notices of Reassessment, requests for information, audit queries, or any letter from CRA related to your tax accounts or rental properties. Provide all correspondence without filtering.

Reassessments affecting CCA balances, rental loss claims, or principal residence elections must be reviewed before the 2025 return is prepared. An adjustment to a prior year CCA balance changes the UCC carry-forward, which affects the current year calculation. Any CRA correspondence about rental expenses or STR compliance is particularly important to flag. If you have received any CRA contact, see our guide: What to Do When CRA Contacts You.

02. Personal Information

Provide updates only for items that changed during 2025. If nothing in this section changed from 2024, note that and move on.

☐ Province of residence on December 31, 2025

Your province of residence on December 31, 2025 determines which provincial tax rates and credits apply to your full 2025 return, regardless of where your rental properties are located.

If your rental properties are located in a different province from where you live, your province of residence still governs your personal tax rates and credits. However, rental income from properties in another province may have provincial non-resident withholding and filing implications in some cases; flag this if your properties are outside your home province.

☐ Marital status as of December 31, 2025

Your status on December 31: single, married, common-law, separated, divorced, or widowed. If your status changed during 2025, provide the date and nature of the change.

Marital status affects spousal amount credits, the GST/HST credit, RRSP spousal contributions, and several provincial credits. If rental properties are co-owned with a spouse, the income and expense allocation between spouses also needs to be confirmed. CRA generally considers you common-law if you have lived in a conjugal relationship for 12 continuous months.

☐ Co-ownership details for jointly held properties (if applicable)

For each property co-owned with a spouse, common-law partner, family member, or other co-owner, provide the ownership percentage, each co-owner’s name and SIN, and whether a co-ownership agreement is in place.

Each co-owner reports their proportionate share of rental income and expenses on their own T776. The split must reflect actual legal ownership, not an arrangement designed to shift income to a lower-income co-owner without corresponding ownership. CRA may challenge allocations that differ from the registered title. If Teplov CPA is preparing returns for multiple co-owners, we will coordinate to ensure consistent reporting. If co-owners file with different preparers, confirm the ownership percentages are reported consistently across all returns.

☐ Spouse or common-law partner information (if applicable)

Name, SIN, and 2025 net income of your spouse or common-law partner. If Teplov CPA is preparing their return as well, we will coordinate. If not, provide their estimated 2025 net income.

☐ Dependant information (if applicable)

Name, date of birth, and SIN for each dependant. For children, note childcare expenses paid in 2025 and the name and SIN of each caregiver or daycare provider.

03. Property Register

Complete this section for every property you own that generated or was available to generate rental income in 2025, including properties that were vacant for part of the year, properties converted between personal use and rental use during 2025, and properties sold during 2025. Each property requires a separate T776 schedule. Organize the documents that follow in Sections 04 through 08 by property.

☐ List of all rental properties owned in 2025

For each property, provide the full civic address, property type (single-family, duplex, triplex, condo unit, basement suite, or other), number of rental units, and your ownership percentage if co-owned.

☐ Rental type for each property: long-term, short-term, or mixed

Indicate for each property whether it operated as a long-term rental (tenancy agreements of one month or more), a short-term rental (individual stays of less than 30 consecutive days, typically through Airbnb or VRBO), or a mixed-use property with both long-term tenants and short-term rental periods.

Long-term and short-term rental income are both reported on T776, but they have different GST/HST treatment, different expense deductibility rules under the 2024 and 2025 federal STR restrictions, and different CRA compliance risk profiles. Mixed-use properties require careful income and expense allocation between the two uses. Confirm the rental type for each property before gathering income and expense records.

☐ Change of use during 2025 (if applicable)

If any property changed its use in 2025, for example converting from a personal residence to a rental, from a rental to a principal residence, from a long-term rental to a short-term rental, or from a rental to vacant or listed for sale, provide the date of the change and a description of the change for each affected property.

A change of use can trigger a deemed disposition at fair market value under Section 45 of the Income Tax Act, potentially creating a taxable capital gain or allowing a capital loss to crystallize. A conversion from personal use to rental is particularly common and requires careful planning around the Principal Residence Exemption. A conversion from a long-term rental to a short-term rental may also have implications under the new STR expense restriction rules. Flag any change of use during intake before we prepare the return; this is not a situation to address after filing.

☐ Purchase details for any rental property acquired in 2025

For each property purchased in 2025 and placed into rental use, provide the closing date, total purchase price, legal fees and land transfer tax paid, and the allocation between land value and building value.

The adjusted cost base (ACB) of the property, including acquisition costs such as legal fees and land transfer tax, is the starting point for the capital gain calculation on a future sale. It must be established accurately at the time of acquisition. The allocation between land and building value is required for CCA purposes; only the building is depreciable. A reasonable allocation can often be based on MPAC assessed values or an independent appraisal, provided the allocation is reasonable and supportable. Do not leave this allocation to be estimated later; establish it now while the purchase documents are available.

☐ Sale details for any rental property sold in 2025

For each rental property sold in 2025, provide the closing date, gross sale price, real estate commission and legal fees paid on disposition, and the original purchase price and acquisition costs. Also confirm whether the property was ever used as your principal residence.

The sale of a rental property triggers a capital gain or loss equal to the proceeds of disposition minus the adjusted cost base minus disposition costs. If the property was ever a principal residence, a partial Principal Residence Exemption may apply to eliminate or reduce the capital gain. CCA previously claimed on the building creates a separate recapture income inclusion (or terminal loss) based on the proceeds allocated to the building versus the remaining UCC. Both the capital gain and the recapture calculation must be prepared before the return is filed. Do not file without all disposition details in hand.

04. Rental Income (by Property)

Organize all income records by property. For investors with multiple properties, prepare a separate income summary for each address. All amounts received in connection with the property must be reported, including regular rent, short-term platform payouts, and ancillary income such as parking, laundry, and storage fees.

☐ Long-term rental income: rent receipts or ledger for each unit in 2025

Monthly rent received for each unit, by month, for the full calendar year. If a unit was vacant for part of the year, note the vacancy period. If a tenant was in arrears, note the arrears amount separately from amounts actually received.

Rental income is generally reported on an accrual basis: rent earned in December that is not received until January still belongs in the December tax year. Arrears owed as of December 31 are generally included in income unless they are genuinely uncollectible and qualify as a bad debt. Confirm the December rent status for each unit from your rent roll or ledger rather than from bank deposits alone.

☐ Short-term rental income: platform payout statements for each property (if applicable)

Annual earnings summaries and monthly payout statements from all STR platforms used in 2025 (Airbnb, VRBO, Booking.com, and any others). Provide statements showing gross booking revenue, platform service fees deducted, and net payouts remitted to you for each property.

Report gross booking revenue on T776, not net platform payouts. Platform service fees deducted before payout are a deductible expense, not a reduction of income. Many STR operators report only the net payout to their bank account and understate both their income and their expenses as a result. The gross revenue figure is also the relevant amount for the GST/HST registration threshold calculation. Confirm that you have downloaded annual statements from each platform’s host portal; year-end summaries are typically available in January for the prior calendar year.

☐ Direct booking income not processed through a platform (if applicable)

Any short-term rental revenue received directly from guests in 2025 that was not processed through Airbnb, VRBO, or another platform. Provide the total amount received, the number of bookings, and whether GST/HST was collected.

Direct booking revenue is fully taxable and must be reported on T776 alongside platform income. If you are registered for GST/HST, GST/HST collected on direct bookings must be remitted. Direct bookings without GST/HST collection when you are a required registrant create a deemed collection liability.

☐ Ancillary rental income: parking, laundry, storage, and other fees

All amounts received in 2025 in connection with the rental property beyond base rent or accommodation fees: parking fees, coin laundry income, storage unit rental, key fob replacement fees, and pet fees.

All amounts received from tenants or guests in connection with the rental property are included in rental income on T776, regardless of how they are labelled. Parking fees paid separately from rent are still rental income. Damage deposits that are applied against damage at year-end are income in the year applied; refundable deposits held at year-end are not income until forfeited or applied.

☐ Damage deposits applied or forfeited in 2025 (if applicable)

If any tenant damage deposits were applied against unpaid rent or property damage in 2025, or forfeited by a departing tenant, provide the amount and the circumstances of each application or forfeiture.

A damage deposit applied against rent arrears or property damage is income in the year of application. A deposit forfeited by a tenant who breaks their lease is also income in the year of forfeiture. Deposits still held at December 31 that have not been applied remain a liability and are not income until applied. Track each tenancy’s deposit status separately at year-end.

☐ Properties rented to related persons below fair market value (if applicable)

If any unit was rented in 2025 to a family member, related person, or anyone with whom you do not deal at arm’s length at a rate below the fair market rent for that unit, identify the property, the relationship, the actual rent charged, and the estimated fair market rent.

When a property is rented to a related person below fair market value, CRA limits deductible expenses to the amount of rental income actually received. You cannot claim a rental loss on a below-fair-market-value tenancy. This is a specific rule that overrides the normal rental expense deduction. The restriction applies to the specific unit rented below fair market value; other units in the same property rented at arm’s length are not affected.

05. Rental Expenses (by Property)

Organize all expense records by property and by category. For investors with multiple properties, keep receipts and records separate for each address. The key distinction throughout this section is between current expenses (deductible in the year paid or incurred) and capital expenditures (added to the property cost base or a CCA class and deducted over time through CCA). When in doubt about whether an expense is current or capital, flag it during intake and we will confirm the correct treatment before filing.

☐ Mortgage interest: year-end mortgage statement for each rental property

Year-end mortgage statement from your lender for each rental property showing the total interest paid in 2025 and the principal balance. Request the annual tax summary from your lender if one is issued.

Only the interest component of mortgage payments is deductible as a rental expense; principal repayment is not deductible. Do not use the total monthly payment as your expense amount. If a single mortgage covers multiple properties or a property with mixed personal and rental use, a reasonable allocation is required. For a refinanced mortgage, only the interest on the portion of the debt used to earn rental income is deductible; interest on cash taken out for personal purposes is not. If you refinanced in 2025, flag the purpose of any cash-out portion.

☐ Property tax bills for each rental property: 2025 amounts paid

Municipal property tax bills for each rental property showing the total amount levied and paid for 2025. If taxes were paid through your mortgage lender’s tax account, confirm the annual amount from your lender statement.

Property taxes are deductible in the year they relate to under the accrual method used for rental income reporting. If you paid 2025 property taxes in instalments, the total of all payments made for the 2025 tax year is deductible in 2025 regardless of when each instalment fell. For a property with mixed personal and rental use, an allocation is required based on the rental portion.

☐ Property insurance premiums for each rental property

Annual premium invoices and payment confirmations for landlord or rental property insurance for each property. If your policy covers multiple properties under a single premium, provide the policy details and we will allocate accordingly.

Landlord insurance premiums are fully deductible as a rental expense. Standard homeowner insurance generally does not cover rental activity; confirm with your insurer that your policy is a landlord or rental property policy. For short-term rental operators, confirm that your policy covers STR use; many standard landlord policies exclude short-term rentals and a separate STR endorsement or policy may be required. The premium for a short-term rental endorsement or STR-specific policy is deductible.

☐ Repairs and maintenance: receipts and invoices for all work done in 2025

All invoices for repairs and maintenance performed at each rental property in 2025. Include plumbing repairs, appliance repairs, painting of existing surfaces, minor electrical fixes, general upkeep, snow removal, lawn care, and any other maintenance work that restores the property to its original condition without adding new value or extending its useful life.

The distinction between a current repair (deductible) and a capital improvement (not immediately deductible) is one of the most frequently challenged areas in rental property returns. A repair restores something to its original working condition; a capital improvement adds something new, replaces a major component with a materially better version, or extends the useful life of the property. Examples of repairs: patching a roof leak, fixing a broken furnace, repainting walls. Examples of capital expenditures: replacing the entire roof, installing a new HVAC system, adding a new deck. Flag any single invoice over CAD $2,000 and any project that involved full replacement rather than repair.

☐ Capital expenditures: invoices for major improvements, replacements, and additions in 2025

Invoices for any work that added new value, replaced a major component of the property, or extended its useful life: new roof installation, full HVAC replacement, major kitchen or bathroom renovation, new flooring throughout, addition of a new room or suite, new windows or exterior doors, new appliances replacing existing ones, and similar.

Capital expenditures are not deducted in full in the year paid. Instead, they are added to the adjusted cost base of the property or to an appropriate CCA class and recovered over time through CCA or on eventual sale. Incorrectly expensing capital items as current repairs is one of the most common errors in rental returns and a frequent point of CRA adjustment. Provide all invoices for major work and we will determine the correct treatment for each item.

☐ Utilities paid by the landlord in 2025 (if applicable)

For properties where you pay utilities rather than the tenant, provide annual totals for electricity, gas, water, and any other utilities paid on the rental property’s behalf in 2025.

Utilities paid by the landlord and not recovered from tenants are a deductible rental expense. Utilities that tenants pay directly to the utility provider are not your expense and should not appear in your records. For a multi-unit building where you pay common area utilities and tenants pay their own suite utilities, include only the common area or landlord-paid amounts.

☐ Property management fees (if applicable)

Invoices and annual statements from property management companies for each managed property. Include management fee percentage or flat fee structure, leasing fees for new tenants, and any other management-related charges.

Property management fees paid to an arm’s length management company are fully deductible as a rental expense. If you pay management fees to a related person or a corporation you control, the fees must be reasonable and supported by documentation of actual services rendered to be deductible.

☐ Advertising and tenant-finding expenses

Costs incurred in 2025 to find tenants or guests: listing fees on rental platforms, rental listing websites, print advertising, background check fees, and credit check fees.

Advertising and tenant acquisition costs are deductible rental expenses. For STR operations, platform listing fees charged outside the per-booking commission model (for example, a flat annual subscription fee) are also deductible.

☐ STR platform service fees (if applicable)

Total service fees charged by Airbnb, VRBO, and any other STR platforms in 2025, shown separately from gross booking revenue. These are typically visible on the annual earnings summary as a deduction from gross bookings before payout.

Platform service fees deducted from gross bookings before payout are a deductible rental expense. Report gross booking revenue as income and platform fees as an expense on T776; do not report only the net payout. Keeping these separated correctly ensures your revenue figure is accurate for GST/HST threshold purposes and that the expense is properly documented if CRA reviews the return.

☐ STR supplies, furnishings, and guest amenities (if applicable)

For short-term rental properties, costs incurred in 2025 for consumable supplies (toiletries, cleaning products, coffee and tea, paper products), replaceable linens and towels, and guest amenity items. Separately identify any furnishings or equipment purchased with a cost over CAD $500 per item.

Consumable guest supplies are deductible as current rental expenses. Furnishings and durable equipment (furniture, appliances, small appliances, bedding above a certain cost) may be capital expenditures subject to CCA depending on their cost and expected useful life. The CCA class for rental property furnishings is typically Class 8 (20% declining balance) for items costing CAD $500 or more. Items under CAD $500 may qualify for Class 12 (100% in the year of acquisition and not subject to the half-year rule).

☐ Cleaning expenses for each property

Invoices for professional cleaning services for each rental property in 2025. For STR properties, this includes per-booking cleaning fees charged separately from accommodation fees, whether paid by the guest or absorbed by the host.

Cleaning costs for rental properties are deductible. For STR properties where guests pay a cleaning fee that flows through the platform, the gross cleaning fee received is income and the cleaning service cost is an expense. Do not net the cleaning fee collected against the cleaning service paid; report both sides separately. If you clean the property yourself rather than hiring a service, no deduction is available for your personal labour time.

☐ Accounting and legal fees related to rental properties

Teplov CPA fees for T776 preparation and bookkeeping related to rental properties, legal fees for drafting or reviewing lease agreements, tenant dispute legal costs, and any other professional fees directly related to managing the rental portfolio.

Professional fees directly related to earning rental income are deductible on T776. Legal fees for a specific property dispute, lease preparation, or eviction proceeding are deductible against the rental income of that property. Legal fees for purchasing or selling a property are capital costs, not current expenses; they form part of the adjusted cost base or are deducted from the proceeds of disposition. Do not claim property acquisition legal fees as a current rental expense.

☐ Condo fees and strata fees (if applicable)

Monthly or annual condominium or strata corporation fee statements for each rental unit held in a condo or strata building. Include both the regular monthly fee and any special assessment levies paid in 2025.

Regular condo fees are deductible as a current rental expense. Special assessment levies are more complex: a levy for routine maintenance or repairs is generally deductible as a current expense; a levy for a capital improvement (such as a new roof or major structural repair to the building envelope) may need to be treated as a capital expenditure. Provide the assessment notice describing the purpose of any special levy so we can confirm the correct treatment.

☐ Other interest and financing charges (if applicable)

Interest paid on a home equity line of credit (HELOC) or other loan where the borrowed funds were used to purchase or improve a rental property, mortgage arrangement fees amortized over the loan term, and any other interest or financing charges related to the rental portfolio.

Interest is deductible only on borrowings used for income-earning purposes. If a HELOC is used partly for personal purchases and partly to fund rental property improvements, only the portion attributable to rental use is deductible. Maintain a clear record of how each borrowing was used. Mortgage arrangement fees (CMHC insurance premiums, lender fees, broker fees) are capital financing costs deductible over the term of the mortgage, not in full in the year paid; flag these for confirmation of the correct amortization treatment.

☐ Vehicle expenses related to rental property management (if applicable)

If you drove to rental properties in 2025 to collect rent, perform inspections, supervise repairs, or meet contractors, provide your mileage log showing date, starting location, destination, purpose, and kilometres for each trip. Also provide total kilometres driven in 2025 and total vehicle expenses by category.

Vehicle expenses incurred to earn rental income are deductible on T776, not on T2125. A mileage log is required to support the business-use percentage. Travel from your home to a rental property is generally deductible because your home is your office for property management purposes, unlike the commute rules that apply to employment. Retain the log alongside your rental records. See our guide: Home Office and Vehicle Expenses: What Self-Employed Canadians Can Actually Deduct.

☐ Home office expenses for rental management activities (if applicable)

If you manage your rental portfolio from a dedicated home workspace and use the space exclusively and regularly for rental management activities, provide home square footage, workspace square footage, and annual totals for rent or mortgage interest, utilities, insurance, and property tax.

Home office expenses for rental management are deductible on T776 using the same workspace percentage method as for self-employment income on T2125. However, this deduction cannot be used to create or increase a rental loss; it can reduce net rental income to zero but no further. If you also claim a home office for self-employment income on T2125, only one home office deduction is available; we will confirm the correct allocation between the two uses. See our guide: Home Office and Vehicle Expenses: What Self-Employed Canadians Can Actually Deduct.

06. Capital Cost Allowance (CCA)

CCA is the mechanism by which you deduct the cost of depreciable capital assets over time. For rental properties, the most common CCA classes are Class 1 (4% declining balance) for the building structure of most residential rental properties built after 1987, and Class 8 (20% declining balance) for furnishings and equipment. CCA on rental property is optional: you can claim any amount from zero up to the maximum in any given year. However, you cannot claim CCA to create or increase a rental loss; CCA can only reduce net rental income to zero. Plan your CCA claim carefully as part of your overall income picture for the year.

☐ Land and building allocation for each rental property

For each rental property in your portfolio, provide the allocation between land value and building value used to establish the depreciable cost of the building. For new clients, provide this for all properties currently held, not only properties acquired in 2025.

CCA can only be claimed on the building, not on land. The allocation between land and building must be documented and reasonable. Common methods include using MPAC assessed values as a ratio applied to the purchase price, or an independent appraisal. Once established, this allocation forms the basis for the Class 1 opening balance and must be carried forward consistently. If a reasonable allocation has never been formally documented for a property you have owned for years, we will establish one now using the best available data.

☐ Capital expenditures from 2025 to be added to CCA classes

Based on the capital expenditure review in Section 05, provide a list of items confirmed as capital in nature with their total cost, the property they relate to, and the nature of the expenditure (building improvement, furnishing, appliance, equipment, and similar).

New additions to a CCA class are subject to the half-year rule in the year of acquisition: only half the normal CCA rate applies to new additions in the year they are added to the class, regardless of when in the year the acquisition occurred. For Class 1 rental buildings, the Accelerated Investment Incentive (AII) has modified first-year CCA rates for properties that became available for use in certain periods. We will confirm the applicable first-year rate for each new addition.

☐ CCA claim decision: confirm whether to claim CCA in 2025 and in what amount

Indicate whether you wish to claim CCA for each property in 2025 and, if so, whether you want to claim the maximum available or a reduced amount. This is a planning decision that should be made in the context of your total income picture for the year.

CCA is optional and can be set to any amount from zero to the maximum. Claiming CCA reduces current year rental income but also reduces the UCC balance, which increases recapture exposure on a future sale and reduces the maximum claimable in future years. In a year with low rental income or a rental loss from other deductions, claiming CCA provides limited benefit and accelerates recapture exposure. In a high-income year, maximum CCA may be valuable. We will model the options as part of your return if you flag this as a planning question.

07. GST/HST for Short-Term Rental Operators

Long-term residential rentals (individual leases of one month or more) are generally exempt supplies for GST/HST purposes. No GST/HST is charged on long-term residential rent, and no input tax credits (ITCs) can be claimed on expenses related exclusively to long-term rental activity. Short-term rentals (stays of less than 30 consecutive days) are taxable supplies. If your total STR revenue exceeded CAD $30,000 in a single calendar quarter or over four consecutive calendar quarters, you are required to register for GST/HST, charge it on accommodation fees, and remit it to CRA. Airbnb and certain other platforms may collect and remit GST/HST on your behalf in some cases; confirm which arrangement applies to your account before filing your HST return.

☐ GST/HST registration status for STR activity: confirm whether you are registered

Your Business Number (9 digits) and, if registered, your GST/HST program account number (for example, 123456789RT0001), your registration and effective dates, and whether you file monthly, quarterly, or annually.

If you are not registered and your STR taxable revenues exceeded CAD $30,000 in a single calendar quarter or over four consecutive quarters, contact us before filing. Late registration creates a deemed collection obligation retroactive to the date registration was required. Note that platform-facilitated collection arrangements (where Airbnb collects and remits HST on your behalf) do not eliminate your obligation to register if you cross the threshold; they affect only the remittance mechanics. Confirm with each platform whether they are collecting HST on your behalf and provide documentation of that arrangement during intake. See our guide: GST/HST Registration for Self-Employed Canadians.

☐ Confirmation of whether each platform collects and remits HST on your behalf

Written confirmation or platform policy documentation indicating whether Airbnb, VRBO, or any other platform you used in 2025 collected and remitted GST/HST on your behalf for Ontario bookings, and the total HST collected and remitted by the platform on your behalf in 2025.

Platform HST collection arrangements vary and have changed over time. If a platform collected and remitted HST on your behalf, you must still report this on your HST return as HST collected; the platform remittance does not eliminate your filing obligation in most cases. The amounts collected by the platform on your behalf and remitted to CRA should be reflected in your annual earnings summary from the platform. Confirm the gross accommodation revenue, the HST collected, and the net payout from each platform’s year-end statement.

☐ ITCs on expenses related to short-term rental activity (if registered)

If registered for GST/HST, the total HST paid on expenses directly related to the short-term rental activity: supplies, cleaning, platform fees (if any HST is charged), furnishings, and any other STR-specific costs where you paid HST as part of the purchase price.

ITCs are only available for the portion of expenses that relates to the taxable (STR) activity. For a mixed-use property with both long-term and short-term rental periods, a reasonable allocation of expenses between the two uses is required before ITCs can be calculated. Keep all supplier receipts showing the Business Number and HST amount paid; these are required for both your HST return and your T776 expense documentation.

☐ HST returns filed for 2025 and amounts remitted (if registered)

Copies of all HST returns filed for reporting periods within or overlapping 2025, including filing confirmations, any amounts owing or refunded, and payment records confirming remittance to CRA.

HST returns must be reconciled to STR gross accommodation revenue before filing your T1. The taxable supply figure on your HST returns and the STR gross revenue on your T776 should be consistent. Discrepancies may arise from platform-collected HST or timing differences between HST reporting periods and the calendar year; all differences should be documented and explainable.

08. Short-Term Rental Compliance

Federal rules effective for 2024 and onwards restrict the deductibility of rental expenses for short-term rental properties that are not compliant with the applicable provincial and municipal licensing and registration requirements. If your STR property is located in a municipality that has prohibited or restricted short-term rentals and you did not hold a valid licence, permit, or registration during 2025, your rental expenses for that property may not be deductible, including mortgage interest, property taxes, insurance, and operating costs. This is a significant change that affects STR operators across Ontario and other provinces where municipalities have introduced STR licensing regimes. This section must be completed before we prepare your return.

☐ Municipal STR rules: confirm the status in each property’s municipality

For each STR property, confirm whether the municipality in which the property is located has enacted bylaws that prohibit, restrict, or require registration or licensing for short-term rentals as of January 1, 2025.

Municipalities with active STR restriction or prohibition bylaws include Toronto, Ottawa, and many other Ontario municipalities, as well as municipalities in other provinces. The rules vary significantly: some municipalities prohibit non-principal-residence STRs entirely; some require registration and limit the number of nights; others have no restrictions. The federal expense deductibility restriction applies where the municipality has a prohibition or licensing requirement and the operator is not compliant. Check the current bylaw status with the municipality directly or provide us with the property’s municipality and we will confirm the relevant rules.

☐ STR licence, permit, or registration documentation for each STR property

Copy of the current STR licence, permit, or registration certificate issued by the municipal licensing authority for each property operated as a short-term rental in 2025. Include the licence number, issue date, and expiry date.

A valid STR licence or registration is required for expense deductibility in municipalities that mandate it. If your municipality requires a licence and you did not hold one during all or part of 2025, rental expenses for the non-compliant period may not be deductible. If you applied for a licence during 2025 and it was pending at some point, flag the timeline and we will confirm what deductions are available for each period. Keep a copy of the licence certificate alongside your tax records for audit protection purposes.

☐ Principal residence status for STR properties (if applicable)

If any of your STR properties is your principal residence (the property where you ordinarily reside) and you rented it out on a short-term basis while living elsewhere or during periods of travel, confirm the number of days in 2025 that the property was your principal residence versus rented as an STR.

Some municipalities restrict short-term rentals to principal residences only; others permit both principal and non-principal residence STRs. For federal tax purposes, renting out your principal residence as an STR does not automatically change its use for Principal Residence Exemption purposes if you continue to ordinarily inhabit it. However, a change of use election or deemed disposition may be relevant if the property is primarily used as a rental rather than as a personal residence. Flag this situation during intake so we can confirm the correct treatment before filing.

09. Principal Residence and Capital Gains

Real estate investors who also own their personal home, or who converted a property between personal and rental use at some point, need to address the Principal Residence Exemption carefully. A property can only be designated as a principal residence for years in which it was ordinarily inhabited by you, your spouse, or your child. A rental property cannot be designated as a principal residence for the same years it was a rental. This section is relevant if you sold a property in 2025, converted a property between uses, or are planning a sale in the near term.

☐ Properties previously used as a principal residence before converting to rental use

For any rental property that was previously your principal residence before you moved out and began renting it, provide the date you moved out, the date you first rented it, and whether you made a principal residence designation for any years it was rented.

A property that was previously your principal residence and later converted to a rental can still be designated as a principal residence for up to four years after the change of use, under the section 45(2) election, if you did not claim CCA on the property after the change of use and you did not designate another property as your principal residence during that period. This election can significantly reduce the capital gain when the property is eventually sold. If you converted a personal residence to a rental without making the section 45(2) election, a deemed disposition at fair market value occurred at the date of change of use, creating a taxable capital gain. If this applies to a property you own, flag it now regardless of whether a sale is imminent.

☐ Capital gain or loss on properties sold in 2025 (if applicable)

For each rental property sold in 2025, provide the adjusted cost base (original purchase price plus acquisition costs plus capital improvements added to cost base), the proceeds of disposition (gross sale price), and the costs of disposition (real estate commission, legal fees, and any other costs directly incurred to complete the sale).

The capital gain is calculated as proceeds minus adjusted cost base minus costs of disposition. The taxable capital gain is the capital gain multiplied by the applicable inclusion rate (two-thirds for gains realized after June 24, 2024, under proposed changes; confirm the applicable rate for dispositions in 2025 at the time of filing, as legislative changes were still being finalized as of early 2026). If the property was your principal residence for some of the years of ownership, a partial Principal Residence Exemption may apply. The recapture calculation on CCA previously claimed is a separate income inclusion on T776 and is not part of the capital gain.

☐ Vendor take-back mortgage or instalment sale arrangements (if applicable)

If you sold a rental property in 2025 and agreed to receive a portion of the proceeds in a future year (for example, through a vendor take-back mortgage or instalment arrangement), provide the terms of the arrangement including the amount to be received and the scheduled payment dates.

If not all proceeds are received in the year of sale, a capital gains reserve may be available to defer a portion of the capital gain to future years as proceeds are received, up to a maximum of five years. The reserve election must be made on the return for the year of sale; it cannot be added retroactively. Flag any instalment or deferred payment arrangement on a property disposition before we prepare the return.

10. Investment Income

☐ T5: interest and dividend income

T5 slips from all financial institutions for interest earned on savings accounts, GICs, and bonds, and for dividends received from Canadian corporations in 2025.

Interest earned inside a TFSA is not reportable. Interest in a non-registered account is fully taxable. If you received dividends from your own corporation, the T5 issued by the corporation must be included here.

☐ T3: trust and mutual fund income

T3 slips from mutual funds, ETFs, and trusts for income allocations in 2025. T3 slips are typically issued in March and are sometimes delayed; do not file without confirming all T3s are in hand.

☐ T5008: securities transactions

Issued by brokerages for proceeds of securities sold in 2025. The T5008 shows proceeds only; you must also provide the adjusted cost base and transaction costs for each disposition to calculate the capital gain or loss.

☐ Foreign bank and investment accounts

If you hold any foreign financial account or specified foreign property, confirm the year-end balance and whether the total cost of all specified foreign property exceeded CAD $100,000 at any time in 2025. Note that foreign real estate held for rental purposes is specified foreign property for T1135 purposes.

The CAD $100,000 threshold is measured at cost, not market value. Foreign rental properties are included in the T1135 calculation at their adjusted cost base. Penalties for failure to file a required T1135 start at CAD $25 per day to a maximum of CAD $2,500. If you own rental property outside Canada, flag this during intake; reporting requirements and foreign tax credit rules apply in addition to the T1135 filing obligation.

11. Registered Plans

☐ RRSP contribution receipts: 2025 and first 60 days of 2026

Official receipts for all RRSP contributions made between January 1, 2025 and March 2, 2026. Contributions in the first 60 days of 2026 can be deducted on your 2025 T1 or carried forward. Collect receipts from all institutions where RRSP accounts are held.

Your 2025 RRSP deduction limit is shown on your 2024 NOA. The 2025 maximum new contribution room is 18% of 2024 earned income to a maximum of CAD $32,490. Note that net rental income on T776 is not earned income for RRSP purposes; only employment income, self-employment income on T2125, and certain other sources generate new RRSP room. If your primary income in 2025 was rental income with no employment or self-employment income, your new RRSP room for 2025 may be limited or zero. Confirm your available room before contributing to avoid a penalty.

☐ RRSP deduction election: confirm amount to deduct in 2025

You are not required to deduct RRSP contributions in the year made. If your 2025 income is higher than expected due to a property sale or significant rental income, it may be advantageous to claim maximum RRSP deductions in 2025 to offset the higher income.

For real estate investors, the RRSP deduction is particularly valuable in years of property disposition when capital gains and CCA recapture create elevated taxable income. Confirm your available deduction room on your 2024 NOA and flag any carryforward from prior years. We will model the optimal deduction strategy as part of your return if you flag a disposition year.

☐ First Home Savings Account (FHSA): contributions and withdrawals (if applicable)

If you opened or contributed to an FHSA in 2025, provide the T4FHSA slip. The 2025 annual contribution limit is CAD $8,000 with a lifetime limit of CAD $40,000. FHSA contributions are deductible and qualifying withdrawals for a first home purchase are tax-free.

☐ Home Buyers’ Plan (HBP) repayment (if applicable)

If you made an HBP withdrawal in a prior year, the required 2025 repayment amount is shown on your 2024 NOA. If the minimum repayment is not made by March 2, 2026, the shortfall is added to your 2025 taxable income. Note: the HBP withdrawal limit was increased to CAD $60,000 for withdrawals made after April 16, 2024, and the grace period before repayments must begin has been extended to five years for eligible withdrawals made between January 1, 2022 and December 31, 2025.

12. Deductions and Personal Tax Credits

☐ Medical expenses

Receipts for eligible medical expenses paid for yourself, your spouse, and dependants in any 12-month period ending in 2025. Request an annual statement from your pharmacy and dentist rather than gathering individual receipts.

Only the amount exceeding the lesser of the 2025 indexed threshold (CAD $2,834) or 3% of net income qualifies for the credit. If you have a PHSP through a self-employment business, confirm which costs were reimbursed through the PHSP and which were paid personally.

☐ Charitable donation receipts

Official tax receipts for all charitable donations to registered Canadian charities in 2025. Include any unused donation carryforwards from prior years shown on your 2024 NOA. Donations can be pooled with a spouse and claimed on one return to maximize the amount above the CAD $200 base.

☐ Childcare expenses (if applicable)

Receipts for daycare, after-school care, summer day camps, and other eligible childcare expenses paid in 2025. Include the amount paid, the provider’s name, and the provider’s SIN or business number.

Childcare expenses are generally claimed by the lower-income spouse. The deduction limit is the lesser of actual expenses, CAD $8,000 per child under 7, CAD $5,000 per child aged 7 to 16, or two-thirds of the lower-income earner’s earned income. Net rental income on T776 is not earned income for childcare expense purposes.

☐ Moving expenses (if applicable)

If you moved at least 40 kilometres closer to a new place of business in 2025, provide receipts for transportation, storage, travel, and temporary accommodation. Moving expenses can only be deducted against income earned at the new location.

☐ Ontario Trillium Benefit: property tax or rent paid on principal residence

If you are an Ontario resident, provide the total property tax paid in 2025 on your principal residence, or total rent paid if renting your principal residence. Note that property taxes on rental properties are a rental expense on T776, not a Trillium Benefit claim.

☐ Digital news subscription receipts

Receipts for eligible digital news subscriptions to qualifying Canadian news organizations in 2025. The federal credit rate and eligible subscription parameters should be confirmed against the 2025 CRA line guidance before filing.

13. Structuring and Planning Flags

These items do not require documents to gather; they are questions to answer before your return is prepared. The answers affect planning decisions and filing positions made as part of the return.

☐ Incorporation of rental portfolio under consideration

If you are considering transferring your rental properties into a corporation, flag this before your 2025 return is prepared.

Holding rental properties in a corporation does not automatically provide the same tax benefits as incorporating a professional practice or operating business. Passive rental income inside a Canadian Controlled Private Corporation (CCPC) is taxed at the high rate (not the small business rate), and the Small Business Deduction is reduced for CCPCs earning passive income above CAD $50,000. The primary benefits of a rental holding corporation are estate planning, liability protection, and income splitting with family shareholders (subject to the Tax on Split Income rules). Transfer of properties into a corporation also triggers a disposition at fair market value unless a section 85 rollover is used, which requires careful planning. Do not proceed with incorporation without a full analysis of your specific situation. See our guide: Should I Incorporate? A Framework for Self-Employed Canadians.

☐ Level of services provided in STR operations: confirm whether activity may constitute a business

If you operate short-term rentals and provide substantial services to guests beyond basic accommodation (for example, daily housekeeping, concierge services, meals, or hotel-like amenities), flag this during intake.

CRA distinguishes between rental income (passive, reported on T776) and business income from accommodation services (active, reported on T2125). The level of services provided to guests is the primary test. A bare-minimum STR with check-in, cleaning between stays, and basic amenities is generally rental income. An operation offering daily housekeeping, meal service, or hotel-style concierge begins to resemble an active accommodation business. The distinction matters for loss deductibility, GST/HST treatment, CCA rules, and RRSP earned income. Flag the nature of your operations so we can confirm the correct characterisation before filing.

☐ Property acquisition in late 2025 or planned acquisition in 2026

If you acquired a rental property in the final months of 2025 or are planning to acquire one in early 2026, flag this before your 2025 return is prepared.

A property acquired late in 2025 with a closing date in December may have limited rental income in 2025 but will begin generating expenses immediately (mortgage interest, property tax, insurance). The timing of the first rental and whether the property was available for rent as of December 31 affects which expenses are deductible in 2025 versus 2026. Upfront costs such as legal fees, land transfer tax, and home inspection fees become part of the adjusted cost base, not current expenses. Flag late-year acquisitions so we can confirm the correct treatment of the partial-year expenses and opening CCA balance.

14. Digital Records and Audit Protection

CRA audits and review requests can arrive two to four years after filing, and longer if CRA suspects misrepresentation or fraud, in which case there is no limitation period. Rental property returns are an active area of CRA review, particularly for STR operators, expense characterisation (current versus capital), and properties with significant losses. The records you gather now may need to be produced in 2027 or 2028. CRA generally requires business records and supporting documents to be kept for six years from the end of the last tax year they relate to. Keep records for property-related matters from the date of acquisition until at least six years after the year of disposition. See also: What to Do When CRA Contacts You.

☐ Permanent property file for each rental property: purchase documents, title, and cost base records

For each property, maintain a permanent file containing: the original purchase agreement and closing documents, land transfer tax receipts, legal fees invoices, title documents, the land and building value allocation established at purchase, and a running record of capital improvements added to the adjusted cost base.

The adjusted cost base record must be maintained from the date of purchase until the property is sold and the final return filed. CRA can assess capital gains going back to the original purchase date; without purchase documents and a complete ACB record, you may be unable to defend the gain calculation. The ACB record is not filed with the return but must be available if CRA requests it. Start this permanent file now if you do not already have one and reconstruct any missing information while it is still possible to do so.

☐ Capital improvement log: running record of all capital expenditures added to cost base or CCA

A chronological log of all capital expenditures made on each property since acquisition, showing the date, description of work, contractor or supplier, amount, and whether the expenditure was added to the adjusted cost base or to a CCA class.

Capital improvements increase the adjusted cost base of the property and reduce the capital gain on an eventual sale. Without a log and corresponding invoices, improvements cannot be added to the ACB retroactively. Investors who understate their ACB by failing to track capital expenditures over the years end up reporting an unnecessarily large capital gain on sale. Build and maintain this log from the current year forward, and reconstruct prior years as completely as possible using historical invoices and records.

☐ Digital backup of all physical receipts and invoices

Scan or photograph all paper and thermal receipts before submitting originals or filing. This applies especially to hardware store receipts, contractor invoices, and any printed receipts for supplies or maintenance materials.

Thermal paper receipts fade within 12 to 18 months and are frequently illegible by the time CRA requests them. A faded or blank receipt provides no audit protection. CRA generally accepts a clear digital image of the original as a supporting document, provided the image is legible and complete. See CRA’s guidance on electronic records. Organise scanned receipts by property and by tax year in a cloud folder.

☐ Lease agreements and rental applications for all tenants (long-term rentals)

Copies of all lease agreements in effect during 2025, including standard lease forms, any schedules or addenda, and any assignment or sublet agreements. For new tenancies commenced in 2025, retain the rental application as well.

Lease agreements are the primary support for your reported rental income. They confirm the tenancy start date, the rent amount, any rent-free periods, and the nature of the tenancy (fixed term or month-to-month). In the event of a dispute about rental income amounts or vacancy periods, the lease agreement is the foundational document. Keep all executed leases including those that expired or were terminated during 2025.

☐ STR booking records and platform statements retained with tax records (short-term rentals)

Download and retain annual earnings summaries from each platform and store them alongside your 2025 tax records. Also retain individual booking records showing check-in dates, check-out dates, nightly rate, cleaning fee, and platform service fee for each booking.

Booking-level records support your reported gross accommodation revenue, the GST/HST calculation for each reporting period, and the occupancy data needed to allocate mixed personal and rental use for a property used partly personally. Platform annual summaries are available from your host portal and should be downloaded before they are archived or removed by the platform. For GST/HST audit purposes, CRA may request booking-level data to verify reported taxable supplies.

☐ All 2025 records organised in a dedicated tax folder by property

Organise all 2025 tax records in a single cloud folder with subfolders for each property, and within each property subfolder, further organised by category: income, mortgage and financing, property taxes, insurance, repairs and maintenance, capital expenditures, GST/HST, and prior year continuity. Store a local backup copy.

CRA review requests typically give 30 days to produce documentation. A property-by-property folder structure that mirrors the T776 schedule for each property allows records to be located and produced by category without searching across multiple tools and email threads. This structure also makes it straightforward to add documents throughout the year as expenses are incurred rather than scrambling to gather them at tax time.