How to Complete the Real Estate Rental Prep Form

This form is essential for clients who own rental properties and need to report rental income, claim related expenses, and provide property ownership details. Completing the form thoroughly will help the tax team calculate net rental income and determine any applicable deductions.

A separate form must be completed for each rental property.

Entering Rental Property Details

Start by providing key information about the property:

• Street Address, City/Province, Postal Code: Enter the complete address of the rental property.

• Number of Units: Indicate the total number of rental units on the property (e.g., duplex = 2 units).

• Ownership Structure: State if the client owns 100%, is in a partnership, or has another ownership structure.

• Owner Details: For each owner, list:

  • Name

  • Ownership % (e.g., John Doe – 50%)

Providing Purchase and Sale Details

Complete this section even if the purchase did not occur in the current tax year (for first-time filings):

• Purchase Price: The original purchase price of the rental property.

• Outlay Expenses: Include legal fees, realtor fees, appraisal costs, and other closing costs.

• Date of Purchase: Use the format MM/DD/YYYY.

• Sale Information: Only complete this section if the property was sold in the current tax year.

Reporting Rental Income

Report all rental-related income earned in the tax year:

• Total Gross Rent Received: Sum of all rental payments collected before expenses.

• Other Income: Any additional amounts earned, such as lease premiums or sharecropping income.

Listing Rental Property Expenses

Input the total annual amount for each expense:

• Personal Use Percentage: If the property is partially used for personal purposes (e.g., basement suite rental), specify the percentage (e.g., 75% personal, 25% rental).

• Advertising: Ads placed to find tenants.

• Insurance: Property insurance premiums.

• Interest: Mortgage interest paid on the rental property loan.

• Office Expenses: Office supplies related to managing the property.

• Professional Fees: Legal, accounting, or property management consulting fees.

• Management and Administration Fees: Fees for property managers or administrators.

• Repairs and Maintenance: Repairs to maintain the rental units (e.g., plumbing, painting).

• Property Taxes: Annual property taxes for the rental property.

• Travel: Costs related to property inspections or managing rental activities (e.g., mileage).

• Utilities: Heat, water, hydro, etc., if paid by the owner.

• Motor Vehicle Expenses: If applicable, for property-related travel (excluding capital cost allowance).

• Salaries, Wages, and Benefits: If employees (e.g., superintendents) are hired to manage the property.

• Other (specify): Any additional expenses (e.g., tenant legal fees, banking fees).

Reporting Capital Expenses

List any capital improvements or asset purchases related to the property:

• Major Renovations or Repairs: Large projects that improve the property’s value (e.g., roof replacement, new flooring).

• Purchase of Appliances: Include details and amounts for appliances (e.g., fridge, stove).

• Other (specify): Any other capital items (e.g., furnace, HVAC systems).