For individuals who earn rental income from properties they own, it’s crucial to accurately report this income to CRA.
Form T4036, Rental Income, is document taxpayer need to fill out to declare their rental earnings.
Form T4036 is an essential part of Canadian tax process, designed specifically for reporting rental income. It helps CRA determine correct amount of taxes a taxpayer owe on rental earnings.
Whether they own a single rental property or multiple units, this form ensures that rental income is accurately recorded and taxed.
Personal Information: Provide personal details including taxpayer’s name, address and social insurance number.
Rental Income: Taxpayer will need to detail the income they received from rental properties Including gross rent collected, any fees or services you provided to tenants and net income after deducting expenses.
Expenses: List all eligible expenses related to rental property, such as mortgage interest, property taxes, maintenance costs and insurance.
Capital Cost Allowance (CCA): Taxpayers can claim CCA for depreciation of building and its assets. This can help reduce taxable rental income.
Calculation: Use provided worksheets to calculate total rental income and deductible expenses. Double-check calculations to avoid errors.
Sign and Date: Once the form is complete, sign and date it to certify the accuracy of information provided.
Taxpayer can submit Form T4036 along with thier income tax return, either electronically, by mail or with assistance of a professional income tax accountant. Make sure to keep a copy of completed form and all supporting documents for own records.