Rental property records in Canada: what the CRA expects landlords to keep
Keep a record of every dollar in and out, and the document behind it. A landlord in Canada reports rental income and expenses on Form T776, Statement of Real Estate Rentals, and the CRA's rental guide is blunt about the evidence: it "may not allow all or part of your expenses if you do not have receipts or other documents to support them".
Current or capital: the question behind every receipt
Most rental receipts land in one of two places, and the CRA's tests decide which:
| Test | Current expense (deduct this year) | Capital expense (depreciate over years) |
|---|---|---|
| How long it lasts | Recurs after a short period — repainting a wooden house | Gives a lasting benefit — vinyl siding on the same house |
| Repair or improvement | Restores the property to its original condition | Improves it beyond its original condition |
| Part or asset | Replaces a part of the property | Replaces a separate asset — a refrigerator for the unit |
The CRA adds that repairs to a used property you have just bought, and repairs made to get a property ready to sell, are generally capital. When the tests don't settle it, it compares the cost with the value of the property.
Capital expenses aren't lost: they are claimed over time through capital cost allowance (CCA). But there is a limit.
What to keep
- Rent received: leases, rent ledgers, deposit slips.
- Current expenses: property tax bills, insurance, utilities you pay, mortgage interest statements, repair invoices, advertising, fees.
- Capital items: the purchase documents for the property, legal fees on purchase, and invoices for every improvement and appliance, because they set your CCA and your cost when you sell.
- Shared use: if you rent out part of your home, the basis for the share you claim, such as the floor area of the rented rooms.
How long
Generally six years from the end of the tax year the records relate to. For the property itself and its improvements, that "last tax year" is the year you sell it, so keep those documents for as long as you own the property and six years after.
Records have to be kept in Canada unless the CRA gives written permission otherwise; if you keep them in an app hosted abroad, keep an exported copy here too.
Planning improvements to a property you live in, or part of it? See how to track renovation costs in Canada.
Sources
Common questions
What records does a landlord need to keep in Canada?
Records of all rental income and expenses, with the receipts and other documents that support them. The CRA's rental guide warns it may not allow all or part of an expense you can't support. Keep them for six years from the end of the tax year they relate to.
Where do I report rental income?
On Form T776, Statement of Real Estate Rentals, which works out your net rental income or loss for your return.
What's the difference between a current and a capital expense?
A current expense recurs after a short period or restores the property to its original condition, like repainting. A capital expense gives a lasting benefit or improves the property beyond its original condition, like new siding, or replaces a separate asset, like a refrigerator.
Can I claim capital cost allowance to create a rental loss?
No. The CRA says you can't use capital cost allowance to create or increase a rental loss.
How long should I keep the purchase records for a rental property?
For as long as you own it and six years after the tax year you sell it, since they decide your capital cost allowance and the gain or loss when you sell.
Every figure on this page is checked against the CRA's own guidance and linked in the sources above. Last checked . Thresholds change each tax year, so if you are reading this well after that date, confirm the current figures before you rely on them. Terms.
Keep reading
How to track renovation costs in Canada, and when the receipts matter
Your own home's renovation receipts rarely matter for tax, with three exceptions: accessibility work, a unit for family, and property you rent or sell.
ReadHow long do you need to keep receipts for the CRA?
Six years from the end of the last tax year they relate to. When the clock starts, when it runs longer, and why your records have to be kept in Canada.
ReadCan you claim business expenses without receipts in Canada?
The CRA can deny what you can't support, and there is no small-expense exemption. What other evidence helps when a receipt is lost, and how to avoid needing it.
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