Tax · Rental property
T776 rental expenses checklist & totaller.
Form T776 lists the expenses you can deduct from rental income, each with its own line number. Fill in what applies, remove any personal-use share, and see your net.
You can deduct expenses incurred to earn rent, such as insurance (8690), mortgage interest (8710), repairs (8960), property taxes (9180) and utilities (9220). If you also live in the building, claim only the part that relates to the rented area. Mortgage principal and improvements are not deductible expenses.
Inputs
Result
Enter your rent and any expenses, then press Calculate.
The T776 expense lines
| Line | Expense |
|---|---|
| 8521 | Advertising |
| 8690 | Insurance |
| 8710 | Interest and bank charges |
| 8810 | Office expenses |
| 8860 | Professional fees (legal and accounting) |
| 8871 | Management and administration fees |
| 8960 | Repairs and maintenance |
| 9060 | Salaries, wages and benefits |
| 9180 | Property taxes |
| 9200 | Travel |
| 9220 | Utilities |
| 9270 | Other expenses |
| 9281 | Motor vehicle expenses (not including CCA) |
CRA also provides line 9949 for the personal portion of expenses and a separate set of lines for short-term rental restrictions; the personal-use percentage above does the same job as line 9949. Capital cost allowance is claimed separately (see the rental CCA schedule), and a terminal loss or recapture goes on its own lines.
Rules worth knowing
- Rented area only. CRA: “you can claim the amount of your expenses that relate to the rented area of the building.” If you rent 25% of the building you live in, the other 75% is personal.
- Reasonable expectation of profit. CRA says you cannot claim expenses for renting part of your property “if you have no reasonable expectation of making a profit.”
- Co-owners each report their share of rent and expenses on their own T776.
- Legal and accounting fees on a purchase are not current expenses; they are split between the land and the building’s capital cost.
Source, retrieved October 2026: CRA guide T4036, Rental Income (Part 4, expense lines).
Frequently asked questions
What expenses can I deduct from rental income in Canada?
Reasonable expenses incurred to earn the rent: advertising, insurance, mortgage interest and bank charges, office expenses, professional fees, management fees, repairs and maintenance, wages, property taxes, travel, utilities, other expenses and motor vehicle costs.
Is mortgage principal deductible?
No. Only the interest portion of mortgage payments is an expense. Principal repays a capital debt.
What is the difference between a repair and an improvement?
Repairs restore the property to its earlier condition and are expenses. Improvements that add value are capital and are depreciated through CCA instead.
Can I deduct expenses if I only rent part of my home?
Yes, the part that relates to the rented area. The basement apartment tax calculator splits shared costs by floor area.
Estimate only
A bookkeeping aid, not tax advice. Nothing you enter leaves your browser. Whether a given cost is a current expense or a capital cost depends on the facts; confirm with CRA guide T4036 or a tax professional.