Own a basement suite, a condo you rent out, a few rental houses or an Airbnb in Calgary? Rental income comes with its own tax rules, and small mistakes, like claiming a renovation as a repair or claiming depreciation without a plan, can cost you later when you sell.
Garg Accounting is a CPA-led firm in Calgary that prepares rental property returns, keeps landlords’ records organised, and plans ahead for the day you sell.
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Yes. Rent from a basement suite or any part of your home is rental income and is reported on Form T776 with your personal return. You can deduct the rental share of eligible expenses such as mortgage interest, property tax, utilities and insurance.
Repairs that restore the property to its original condition are usually deductible in the year you pay them. Improvements that make the property better than it was, such as a new addition or a major upgrade, are generally capital and are added to the cost of the property instead. We help you classify each expense correctly.
CCA can lower your tax now, but it can create recapture when you sell. It also cannot be used to create or increase a rental loss. Whether to claim it depends on your plans for the property, and we will walk you through the trade-off.
Short-term rental income is taxable, and depending on the services you provide it may be rental income or business income. Short-term rentals can also be subject to GST. Since 2024, expenses for short-term rentals that do not comply with provincial or municipal licensing rules can be denied, so keep your City of Calgary licence up to date.
Non-resident landlords are subject to non-resident tax on rental income, usually withheld by a tenant or property manager, and can often file an election to be taxed on net rental income instead. We can help you set this up and file the returns.
Tax season: see our Calgary tax deadlines for 2026–2027.
Garg Accounting · 4310 104 Avenue NE, Unit 3230, Calgary, AB T3J 1W5 · +1 368-995-6000 · info@gargaccounting.ca · Mon–Fri 9:00 AM–5:30 PM
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