Industries

Tax and accounting for rental property owners.

Rental income reported correctly, whether you own one suite or a full portfolio.

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What we look at

What we look at in a rental owner's file.

Income and expenses

Rent, property tax, insurance, repairs, mortgage interest and management fees reported on the right schedule.

Repairs or improvements

Repairs are deducted now; improvements are capital and depreciated over time. The difference changes this year's tax.

Capital cost allowance

Depreciation can reduce tax now but may be recaptured when you sell, and it can't create a rental loss.

Co-owners and spouses

Income is generally reported by each owner in proportion to ownership, subject to attribution rules if one spouse funded the purchase.

Short-term rentals

Short-term rental income, GST registration once you pass the small supplier threshold, and how BC's rules affect your plans.

Selling a rental

Capital gains, recapture and principal residence questions worked out before the sale closes.

What we do for you

Everything is prepared and reviewed by a CPA, and your personal and business files are handled together.

Personal T1 returns with rental schedules
Returns for each co-owner
Depreciation schedules
GST/HST for short-term rentals
Corporate returns for rental corporations
Sale and transfer planning

Guide

Rental property tax in BC: what landlords should know.

Whether you rent a basement suite or own several properties, most rental tax questions come down to a few areas: what you can deduct, how depreciation works, and what happens when you sell.

Reporting rental income

Rental income and expenses are reported on your personal return. If you own the property with someone else, each owner generally reports their share based on ownership. If one spouse funded the purchase, attribution rules can shift the income back to them.

Expenses you can deduct

Mortgage interest (not principal)
Property tax, insurance and strata fees
Repairs and maintenance
Property management and advertising
Utilities you pay for the tenant

Repairs or improvements?

A repair restores something to its original condition and is deducted right away. An improvement, like a new roof with better materials or an added suite, is capital and depreciated over time. The difference changes this year's tax.

Depreciation and recapture

You can claim capital cost allowance on the building, but it can't create or increase a rental loss. When you sell, depreciation you've claimed may be added back to income as recapture, so claiming it isn't always the right choice.

Renting part of your home

If you rent a suite in your home, you deduct the share of expenses that relates to the rental. Claiming depreciation on that part of your home can affect your principal residence exemption, so it's usually avoided.

Short-term rentals

BC's short-term rental rules limit most short-term rentals to your principal residence in many communities. Short-term rental income is also subject to GST once you pass $30,000 in taxable revenue, unlike long-term residential rent, which is exempt.

Selling a rental

Half of a capital gain is taxable
Depreciation claimed may be recaptured as income
Sales within 365 days may be taxed as business income under federal flipping rules
BC's home flipping tax can apply to sales within two years of purchase

Have a question about your situation?

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Working with us

In person in Vancouver, or by video from anywhere in BC.

Start with a short call

We learn what you need and give you a quote upfront.

Connect securely

You authorize us with the CRA and share documents through our secure client portal.

We do the work

Your file is prepared and reviewed by a CPA, with questions sent as they come up.

Review together

We walk you through the results by phone, video, at our office or wherever suits you.

Questions

Common questions.

Should I hold my rental in a corporation?

Usually not for one or two properties. Rental income is taxed at high corporate rates, and transferring a property in can trigger costs. It can make sense for larger portfolios, so we model it with you.

Can I deduct my mortgage payments?

The interest on money borrowed to buy or improve the rental, yes. Principal repayments, no.

My rental is outside Vancouver. Is that a problem?

No. We work with landlords who own rentals anywhere in BC.

Can I claim a loss on my rental?

Yes, if expenses exceed rent, though depreciation can't be used to create or increase the loss.

Do I pay GST on long-term rent?

No. Long-term residential rent is GST exempt. Short-term rentals can be taxable.

Do I need to meet you in person?

No. Most clients meet by phone or video, and we're happy to come to you if you'd rather meet in person.

Talk to a CPA about your file.

Book a call