*** Transcriber's Note: Please set your voice synthesizer to read most punctuation. When you encounter the caret sign at the end of a line, please enter the applicable information, if necessary. *** Canada Revenue Agency Protected B when completed T776 E (25) (Page 1 of 6) Statement of Real Estate Rentals - Use this form if you own and rent out real estate or other property including residential property that is a short-term rental. It relates mainly to renting real estate but also covers some other types of rental property such as farmland. This form will help you determine your gross rental income, the expenses you can deduct, and your net rental income or loss for the year. - To determine whether your rental income is from property or a business, consider the number and types of services you provide for your tenants: -- If you rent space and only provide basic services such as heating, lighting, parking, and laundry facilities, you are earning an income from renting property. -- If you provide additional services such as cleaning, security, and meals, you may be conducting a business. - For more information about how to determine if your rental income comes from property or a business, see Interpretation Bulletin IT-434, Rental of Real Property by Individual, and its Special Release. - If you are a co-owner of a property, you have to determine if a partnership exists before filling in Part 1 below. To determine if you are in a partnership, see Income Tax Folio S4-F 16-C 1, What is a Partnership? - For information on how to fill out this form, see Guide T4036, Rental Income. Part 1 - Identification Your name ^ Your social insurance number (enter 9 digits) ^ Your address ^ City ^ Province/Territory ^ Postal code ^ Fiscal period from Date (Year/Month/Day) ^ to (Year/12/31) ^ Was this the final year of your rental operation? Yes or No ^ Your percentage of the partnership % ^ Industry code 531111 Tax shelter identification number (8 characters) ^ Partnership business number (enter 9 digits) ^ Name of the person or firm preparing this form ^ Business number/Account number (enter 15 digits) ^ Address of the person or firm preparing this form ^ City ^ Province/Territory ^ Postal code ^ Part 2 - Details of other co-owners and partners Co-owner or partner's name and address ^ Share of net income (loss) $^ Percentage of ownership % ^ Co-owner or partner's name and address ^ Share of net income (loss) $^ Percentage of ownership % ^ Co-owner or partner's name and address ^ Share of net income (loss) $^ Percentage of ownership % ^ Part 3 - Income In most cases, you calculate your rental income using the accrual method. If you have no amounts receivable and no expenses outstanding at the end of the year, you can use the cash method. *** Transcriber's Note: Enter as many lines as necessary for the following. *** List the addresses of your rental properties. ^ Number of units ^ Gross rents for short-term rentals ^ Gross rents for all units ^ Line 8140: Total of your gross rents for short-term rentals in the year you receive them (add amounts under "Gross rents for short-term rentals") ^ Line 8141: Total of all your gross rents in the year you receive them (add lines under "Gross rents for all units"). ^ Line 8230: Other income (for example, premiums and leases, sharecropping) ^ Line 8299: Total gross rental income: Enter this amount on your income tax and benefit return on line 12599 (line 8141 plus line 8230) ^ T776 E (25) (Page 2 of 6) Part 4 - Expenses Line 8521: Advertising Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line 8690: Insurance Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line 8710: Interest and bank charges Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line 8810: Office expenses Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line 8860: Professional fees (including legal and accounting fees) Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line 8871: Management and administration fees Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line 8960: Repairs and maintenance Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line 9060: Salaries, wages and benefits (including employer's contributions) Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line 9180: Property taxes Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line 9200: Travel Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line 9220: Utilities Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line 9281: Motor vehicle expenses (not including capital cost allowance) Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line 9270: Other expenses Total expenses ^ Personal portion of total expenses ^ Short-term rental portion of total expenses ^ Line A: Total expenses (add amounts listed under "Total expenses") ^ Line 9949: Total for personal portion (add amounts listed under "Personal portion of total expenses") ^ Line 9365: Total for short-term rental portion (add amounts listed under "Short-term rental portion of total expenses") ^ Line 9366: Non-compliant amount for short-term rentals (amount B from Chart A) ^ Line 1: Deductible expenses (amount A minus line 9949 minus line 9366) ^ Line 9369: Net income (loss) before adjustments (total gross rental income from line 8299 minus deductible expenses from amount 1) ^ Line 2: Co-owners: calculate your share of net income from line 9369. Enter your result on amount 2 ^ Line 9945: Other expenses of the co-owner: other deductible expenses you have as a co-owner which you did not deduct elsewhere ^ Line 3: Subtotal (amount 2 minus line 9945) ^ Line 9947: Recaptured capital cost allowance (co-owners: enter your share of the amount) ^ Line 4: Subtotal (amount 3 plus line 9947) ^ Line 9948: Terminal loss (co-owners: enter your share of the amount) ^ Line 5: Subtotal (amount 4 minus line 9948) ^ Line 9367: Non-compliant amount of capital cost allowance (CCA) for short- term rentals (amount C from Chart B) ^ Line 9936: Total CCA claim for the year (amount ii from Area A minus any personal part of CCA, and any CCA for business-use-of home expenses) ^ Line 6: Net income (loss) (amount 5 minus line 9936) ^ If you are a sole proprietor or a co-owner, enter this amount on line 9946. Partnerships Line 7: Partners: your share of amount 6, or the amount from your T5013 slip, Statement of Partnership Income ^ Line 9974: Partners: GST/HST rebate for partners received in the year ^ Line 9943: Partners: other expenses of the partner ^ Line 9946: Your net income (loss): For sole proprietors or co-owners, enter the result from amount 6. For partnerships, enter the result from amount 7 plus line 9974 minus line 9943. Enter this amount on line 12600 of your income tax and benefit return ^ T776 E (25) (Page 3 of 6) *** Transcriber's note: In print Areas A to G are set up in a columnar format. Applicable titles are listed in each Area. Enter as many lines as required for the following. *** Area A - Calculation of capital cost allowance (CCA) claim Column 1: Class number ^ Column 2: Undepreciated capital cost (UCC) at the start of the year ^ Column 3: Cost of additions in the year (see Areas B and C below) ^ Column 4: Cost of additions from column 3 that are DIEPs (property must be available for use before 2025) (Note 1) ^ Note 1: Columns 4, 6, 8, and 9 apply only to designated immediate expensing properties (DIEPs). See subsection 1104(3.1) of the Income Tax Regulations for definitions. A DIEP is a property that you acquired after December 31, 2021, and that became available for use before 2025. For more information, see Guide T4036. Column 5: Proceeds of dispositions in the year (see Areas D and E below) (Note 2) ^ Note 2: The proceeds of disposition of a zero-emission passenger vehicle (ZEPV) that has been included in Class 54, or a passenger vehicle bought after April 18, 2021, that has been included in Class 10.1, and whose cost is more than the prescribed amount will be adjusted based on a factor equal to its prescribed amount as a proportion of the actual cost of the vehicle. For dispositions after July 29, 2019, you will have to adjust the actual cost of the vehicle for any payments or repayments of government assistance that you may have received or repaid for the vehicle. If the passenger vehicle in Class 10.1 is not designated for immediate expensing treatment, this special rule does not apply. For more information on proceeds of disposition and the prescribed amounts, read "Class 10.1 (30%)" and "Class 54 (30%)" in Guide T4036. Column 6: Proceeds of dispositions of DIEP (enter amount from column 5 that relates to DIEP from column 4) ^ Column 7: UCC after additions and dispositions (column 2 plus column 3 minus column 5) (Note 3) ^ Note 3: If you have a negative amount in column 7, add it to income as a recapture under "Recaptured capital cost allowance" on line 9947. If no property is left in the class and there is a positive amount in this column, deduct the amount from your income as a terminal loss under "Terminal loss" on line 9948. Recapture and terminal loss do not apply to a Class 10.1 property unless it is a DIEP. For more information, read Chapter 3 of Guide T4036. Column 8: UCC of DIEP (column 4 minus column 6) (Note 4) ^ Note 4: The amount you enter in column 8 must not be more than the amount from column 7. If the amount from column 7 is negative, enter "0." Column 9: Immediate expensing amount for DIEPs (Note 5) ^ Note 5: The immediate expensing applies to DIEPs included in column 8. The total immediate expensing amount for the tax year (total of column 9) is limited to the lesser of: - the immediate expensing limit, which is equal to one of the following, whichever is applicable: -- $1.5 million, if you are not associated with any other eligible person or partnership (EPOP) in the tax year -- amount iii of Area G, if you are associated with one or more EPOPs in the tax year -- zero, if you are associated with one or more EPOPs and an agreement that assigns a percentage to one or more of the associated EPOPs was not filed with the minister in a prescribed form -- any amount allocated by the minister under subsection 1104(3.4) of the Regulations - the UCC of DIEPs in column 8 - the amount of income, if any, earned from the source of income that is a property (before any CCA deductions) in which the relevant DIEP is used for the tax year For more information, see Guide T4036. Line i: Total immediate expensing claim for the year: Total of column 9 ^ Column 10: Cost of remaining additions after immediate expensing (column 3 minus column 9) ^ Column 11: Cost of remaining additions from column 10 that are AIIPs or ZEVs acquired before 2025 (Note 6) ^ Column 12: Cost of remaining additions from column 10 that are RIIPs or ZEVs acquired after 2024 (Note 6) ^ Note 6: Columns 11, 12, 14, 15, 16, and 17 apply only to accelerated investment incentive properties (AIIPs) (see Guide T4036 for the definition), zero- emission vehicles (ZEVs), ZEPVs, and other eligible zero-emission automotive equipment and vehicles that become available for use in the year. Under proposed changes, these columns may also apply to reaccelerated investment incentive properties (RIIPs) (see Guide T4036 for the proposed definition). In this chart, ZEVs represent ZEVs, ZEPVs, and other eligible zero-emission automotive equipment and vehicles. An AIIP is a property (other than a ZEV) that you acquired after November 20, 2018, (and, under proposed changes, before 2025) and that became available for use before 2028. A ZEV is a motor vehicle included in Class 54 or 55 that you acquired after March 18, 2019, and that became available for use before 2028 (or, under proposed changes, before 2034), or eligible zero-emission automotive equipment and vehicles included in Class 56 acquired after March 1, 2020, and that became available for use before 2028 (or, under proposed changes, before 2034). Under proposed changes, a RIIP is a property (other than a ZEV) that you acquired after 2024, and that became available for use before 2034. For more information, see Guide T4036. Column 13: Remaining UCC after immediate expensing (column 7 minus column 9) ^ Column 14: Proceeds of dispositions available to reduce additions of AIIPs, RIIPs, and ZEVs (column 5 minus column 10 plus column 11 plus column 12). If negative, enter "0" ^ Column 15: UCC adjustment for current-year additions of AIIPs and ZEVs acquired before 2025 (column 11 minus column 14) multiplied by the relevant factor. If negative, enter "0" (Note 7) ^ Note 7: For ZEVs (under proposed changes, acquired before 2025) and AIIPs that became available for use in 2025, the relevant factors are one and one half (Classes 43.1, 54, and 56), 7 divided by 8 (Class 55), and one half (Classes 43.2 and 53). Under proposed changes, for properties included in Class 44, 46, or 50 acquired after April 15, 2024, and that became available for use in 2025, the relevant factors are 3 (Class 44), two and one third (Class 46), and 9 divided by 11 (Class 50). The factor is 0 for any remaining AIIPs not listed in this note. Column 16: Proceeds of dispositions available to reduce additions of RIIPs and ZEVs acquired after 2024 (column 14 minus column 11).If negative, enter "0" ^ Column 17: UCC adjustment for current-year additions of RIIPs and ZEVs acquired after 2024 (column 12 minus column 16) multiplied by the relevant factor. If negative, enter "0" (Note 8) ^ Note 8: Under proposed changes, for ZEVs acquired after 2024 and RIIPs that became available for use in 2025, the relevant factors are 3 (Class 44), two and one third (Classes 43.1, 46, 54, and 56), one and one half (Class 55), 1 (Class 53), 9 divided by 11 (Class 50), and 0 (Classes 12, 13, 14, 15, and 59). The factor is one half for any remaining RIIPs not listed in this note. Column 18: Adjustment for current-year additions subject to the half-year rule. one half multiplied by (column 10 minus column 11 minus column 12 minus column 5). If negative, enter "0" ^ Column 19: Base amount for CCA (column 13 plus column 15 plus column 17 minus column 18) ^ Column 20: CCA rate % ^ Column 21: Available CCA for the year (column 19 multiplied by column 20, or a lower amount, plus column 9) ^ Column 22: Non-compliant amount of CCA (see Chart B below) ^ Column 23: CCA claim for the year (column 21minus column 22) ^ Column 24: UCC at the end of the year (column 7 minus column 23) (Note 9) ^ Note 9: If, in the year, you disposed of a property that you used for both personal and rental use, and your rental use of that property changed from year to year, you must subtract any remaining personal part of this property's cost from the UCC at the end of the year. For more information, see "Special situations" in Chapter 4 of Guide T4002. Line ii: Total CCA claim for the year *: Total of column 23 (enter on line 9936 of Part 4 amount ii minus any personal part and any CCA for business- use-of-home expenses **) ^ * Sole proprietors and partnerships: Enter the total CCA claim for the year from amount ii on line 9936. Co-owners: Enter only your share of the total CCA claim for the year from amount ii on line 9936. ** For information on CCA for calculating business-use-of-home expenses, see "Special situations" in Chapter 4 of Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income. To help you calculate the CCA, see the calculation charts in Areas B to G. T776 E (25) (Page 4 of 6) For more information on AIIPs, RIIPs, CCA, ZEVs, and ZEPVs, see Guide T4036 or go to canada.ca/taxes-accelerated-investment-income. Area B - Equipment additions in the year Column 1: Class number ^ Column 2: Property details ^ Column 3: Total cost ^ Column 4: Personal portion (if applicable) ^ Column 5: Rental portion (column 3 minus column 4) ^ Line 9925: Total equipment additions in the year: Total of column 5 ^ Area C - Building additions in the year Column 1: Class number ^ Column 2: Property details ^ Column 3: Total cost ^ Column 4: Personal portion (if applicable) ^ Column 5: Rental portion (column 3 minus column 4) ^ Line 9927: Total building additions in the year: Total of column 5 ^ T776 E (25) (Page 5 of 6) Area D - Equipment dispositions in the year Column 1: Class number ^ Column 2: Property details ^ Column 3: Proceeds of disposition (should not be more than the capital cost) ^ Column 4: Personal portion (if applicable) ^ Column 5: Rental portion (column 3 minus column 4) ^ Line 9926: Total equipment dispositions in the year: Total of column 5 ^ Area E - Building dispositions in the year Column 1: Class number ^ Column 2: Property details ^ Column 3: Proceeds of disposition (should not be more than the capital cost) ^ Column 4: Personal portion (if applicable) ^ Column 5: Rental portion (column 3 minus column 4) ^ Line 9928: Total building dispositions in the year: Total of column 5 ^ Area F – Land additions and dispositions in the year Line 9923: Total cost of all land additions in the year ^ Line 9924: Total proceeds from all land dispositions in the year ^ Note: You cannot claim capital cost allowance on land. For more information, see Chapter 4 of Guide T4036. Area G - Agreement between associated eligible persons or partnerships (EPOPs) Are you associated in the fiscal period with one or more EPOPs that you have entered into an agreement with under subsection 1104(3.3) of the Regulations? Yes or No ^ If you answered yes, fill in the table below. Enter the percentage assigned to each associated EPOP (including yourself) as determined in the agreement. This percentage will be used to allocate the immediate expensing limit. The total of all percentages assigned under the agreement should not be more than 100%. If the total is more than 100%, then the associated group has an immediate expensing limit of zero. For more information about the immediate expensing limit, see Guide T4036. *** Transcriber's Note: In print, the following table is set-up as 3 columns, labelled as: Column 1: Name of the EPOP; Column 2: Identification number (Note 10); Column 3: Percentage assigned under the agreement. Enter as many lines as necessary for the following. *** Column 1: Name of the EPOP ^ Column 2: Identification number (Note 10) ^ Column 3: Percentage assigned under the agreement ^ Note 10: The identification number is the EPOP's social insurance number, business number, or partnership account number. Total of percentage assigned: Total of column 3 ^ Line iii: Immediate expensing limit allocated to you: Multiply $1.5 million by the percentage assigned to you in column 3 (see note 11) ^ Note 11: If the total of column 3 is more than 100%, enter "0." T776 E (25) (Page 6 of 6) *** Transcriber's note: In print Charts A and B are set up in a columnar format. Applicable titles are listed in each Area. Enter as many lines as required for the following. *** Chart A - Non-compliant amount of expenses for short-term rentals If you incurred an expense to earn rental income from a rental property with multiple rental units, where some rental units were used for short-term rentals, long-term rentals, or both short-term and long-term rentals (mixed rentals), exclude the portion of the expense which is related to long-term rentals. You must divide expenses, on a reasonable basis, between each short- term rental or mixed rental. Enter each short-term rental or mixed rental property on a separate row. If your rental property has several units which include long-term, short-term, and mixed rentals, enter each short-term rental or mixed rental on a separate row instead of the rental property they are part of. For more information on short-term rentals, see Guide T4036. Column 1: Rental property address ^ Column 2: Unit number ^ Column 3: Related portion of the total from line 9365 of Part 4 ^ Column 4: Number of days the residential property was a non compliant short- term rental ^ Column 5: Number of days the residential property was a short-term rental ^ Column 6: Non-compliant amount (column 3 multiplied by column 4 divided by column 5) ^ Line B: Total non-compliant amount of expenses for short-term rentals: Total of column 6 (enter on line 9366 of Part 4) ^ Chart B - Non-compliant amount of CCA for short-term rentals If you used a depreciable property to earn rental income from a rental property with multiple rental units, where some rental units were used for short-term rentals, long-term rentals, or both short-term and long-term rentals (mixed rentals), exclude the portion of the CCA which is related to long-term rentals. You must divide CCA, on a reasonable basis, between each short-term rental or mixed rental. Enter each short-term rental or mixed rental property on a separate row. If your rental property has several units which include long-term, short-term, and mixed rentals, enter each short-term rental or mixed rental on a separate row instead of the rental property they are part of. For more information on short-term rentals, see Guide T4036. Column 1: Class number ^ Column 2: Rental property address ^ Column 3: Unit number ^ Column 4: Related portion of the available CCA from column 21 in Area A ^ Column 5: Number of days the residential property was a non-compliant short- term rental ^ Column 6: Number of days the residential property was a short-term rental ^ Column 7 ***: Non-compliant amount (column 4 multiplied by column 5 divided by column 6) ^ *** For each class, add the amounts from column 7 of Chart B and enter each total in column 22 of Area A, in the respective row. Line C: Total non-compliant amount of CCA for short-term rentals: Total of column 7 (enter on line 9367 of Part 4) ^ See the privacy notice on your return.