Rental income shouldn’t be complicated for you. We make sure it’s not
At QTTS, we understand real estate, from rental income to capital gains and property sales. We don’t just claim your expenses; we make sure they’re claimed properly, so you don’t pay more taxes than you should.
Expenses VS Capital Expenses​
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Not all expenses are created equal. Some you can write off right away, others, not so much. Those are called Capital Expenses. Never heard of it? Here’s a quick breakdown.
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Capital expenses are costs tied to improvements or repairs that last more than a year. Think: a new roof, upgraded balconies, renovated interiors, or replacing old staircases. These upgrades are long-term, so they don’t count as regular expenses. Instead, they get added to your Capital Cost Allowance (CCA).
​How does CCA work?
Each CCA category has its own yearly claim percentage and no, you're not forced to claim it every year. Condo sat empty half the year and your expenses were higher than your rental income? Don’t claim CCA that year. Why? Because it’s smarter to use it when you’re actually making money that way, it offsets more tax.
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CCA claims shrink over time because they’re based on a percentage of a declining balance. You won’t lose your CCA if you don’t use it all. When you sell, any leftover CCA helps reduce your capital gain. So whether you use it now or later, it’s still working in your favour.
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​Classification Matters​
It’s critical to classify your expenses properly. If you incorrectly claim capital expenses as regular deductions and your rental shows a loss, you’re practically inviting CRA to audit you.
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And here’s the kicker: once they start digging, they don’t stop at one year. Misclassifications can trigger multi-year audits, interest charges, and even penalties, especially if some of those expenses were personal or unusually high and falsely reported to manufacture a loss.​​​
Expenses You Can Claim​
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Managing rental properties means navigating a jungle of possible write-offs, but we make sense of it. Here’s a breakdown of what’s typically deductible. We made sense of it, so you don't have to.
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Advertising
Trying to fill a vacancy? Ads placed to find new tenants are deductible.
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Insurance
Premiums for rental property insurance can be written off for the year they apply to.
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Interest & Bank Charges
Interest on loans or lines of credit used to buy or improve rental property? Deductible. Mortgage renewal fees too? Yup, those count.
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Office Expenses
Paper, printer ink, software, anything used to manage your rental qualifies.
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Professional Fees
Fees paid to an accountant or lawyer? Covered. Hiring someone to collect overdue rent? Covered.
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Management & Admin Fees
Paid someone or a company to manage your rental? That includes agent commissions, rent collection, or tenant searches, all deductible.
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Repairs & Maintenance
Minor fixes like paint, lightbulbs, or caulking? Deductible. Just don’t confuse these with capital upgrades.
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Salaries & Wages
If you hired an employee to help manage your properties, you can claim their salary and benefits.
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Property Taxes
Property taxes on your rental? 100% deductible.
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Travel
Travel to your rental? Yes if it’s for property management or repairs. No if it's just to collect rent from one property (CRA considers that personal).
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Utilities
Electricity, water, heat, internet — if you're covering it for the tenant or building, it's a valid expense.
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Motor Vehicle Expenses
Using your car for repairs or supply runs? Deduct mileage. If you manage multiple properties, even rent collection trips count.
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Other Expenses
Snow removal, landscaping, condo fees, if the cost helps you earn rental income and doesn’t fit anywhere else, it probably qualifies.
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Live at the Property?
If you’re living in one of the units (e.g., a duplex or triplex), CRA expects you to split shared expenses based on your personal use. Live in 1 of 3 units? You only get to deduct 66%. CRA’s strict, don’t mess around with this split.
What’s This Gonna Cost?
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Let’s talk numbers.
Rental income falls under a detailed tax return, which cost $120.
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More than one rental property?
Each rental needs its own tax form. You can’t lump everything together.
Each additional property is $50.
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