Rental income or business income
To determine whether your rental income is from property or business, consider the number and types of services you provide for your tenants.
In most cases, you are earning an income from your property if you rent space and provide basic services only. Basic services include heat, light, parking and laundry facilities.
If you provide additional services to tenants, such as cleaning, security and meals, you may be carrying on a business. The more services you provide, the greater the chance that your rental operation is a business.
For more information about how to determine if your rental income comes from property or a business, go to Interpretation Bulletin IT-434, Rental of Real Property by Individual, and Interpretation Bulletin IT-434SR, Rental of Real Property by Individual.
Note
If you determine that your rental operation is a business, go to Sole proprietorships and partnerships. You can use Form T2125 and the Guide T4002 to calculate your business income and expenses.