If you own a rental property in Canada, you must report all rental income to the CRA, even if the property is rented part-time or occasionally. The CRA considers you a landlord when you rent out a property and receive income from it, whether monthly, seasonally, or through platforms like Airbnb. You can deduct eligible expenses from your rental income to calculate your net profit or loss. Understanding what counts as deductible rental expenses is one of the most important skills for landlords filing their 2026 tax return. Rental income includes any money you receive for allowing someone to live in or use your property. This includes: Regular monthly rent payments Damage deposits (only if you keep them; return deposits are not income) Payments for utilities, parking, or amenities you normally cover Lease cancellation fees Airbnb or short-term rental payments Room rentals in your principal residence You must report rental income in the year you receive it, even if the tenant hasn't paid yet. If a tenant owes you money that they never pay, you cannot deduct it as a loss (with rare exceptions).
Yes. Airbnb income is rental income and must be reported to the CRA. You can deduct eligible expenses like utilities, maintenance, cleaning, and property management fees. Keep all receipts and track occupancy dates carefully.
You can only deduct the interest portion of your mortgage, not the principal. Your mortgage statement shows how much is interest each month. You cannot deduct the principal repayment because it builds equity in the property.
Report the loss on Form T776. You can use this loss to reduce your other income in 2026, or carry it forward to offset rental profits in future years. Reporting losses is normal and legitimate.
No, claiming CCA is optional. Many landlords avoid it because CCA recapture tax applies when you sell the property. Skipping CCA keeps your tax situation simpler, though you lose the immediate deduction benefit.
The CRA requires you to keep records for at least six years from the end of the tax year they relate to. This means 2026 receipts should be kept until at least December 2032.