Do you understand your Personal Taxes when you have Rental Income?

5 April, 2015

Rental Properties are a great way to increase income, provide tax deductions, and build your net worth. However, when owning a rental property there are a lot of responsibilities that are required, one of them is that Landlords need to keep excellent records regarding cost basis, income, and expenses.
As a landlord, here are the things you need to keep track of:

  • Purchase price of the house, condo, or apartment building you are renting out,
  • Accumulated depreciation, and current annual depreciation on your property,
  • Rental income,
  • Security deposits you received.

In addition, a Landlord must keep track of various expenses associated with your rental property, including:

  • Fees paid to management companies
  • Cleaning, maintenance, and repair costs,
  • Homeowners insurance and HOA dues,
  • Real estate taxes and mortgage interest expenses,
  • Security deposits reimbursed to the tenant.
  • and various other expenses, such as utilities, landscaping, garbage, advertising, etc.

Managing these records is very important, so you can provide adequate support for your tax return. Many people use either a spreadsheet or leverage a software program. Your tax accountant may even have a template you can use.
At NumbersPlus we are experts in helping our clients ensure that they have captured the maximum amount of deductions, help build their asset base, and prevent lost opportunities. Contact us at 289-290-3322 or email us at info@numbersplus.ca.


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