Canada Form T776 – Fill Out and Use This PDF

Protected B when completed

•Use this form if you own and rent real estate or other property. It relates mainly to renting real estate but also covers some other types of rental

property such as farmland. This form will help you determine your gross rental income, the expenses you can deduct, and your net rental income or loss for the year.

•To determine whether your rental income is from property or a business, consider the number and types of services you provide for your tenants:

–If you rent space and only provide basic services such as heating, lighting, parking, laundry facilities, you are earning an income from renting property.

–If you provide additional services such as cleaning, security, and meals, you may be conducting a business.

•For more information about how to determine if your rental income comes from property or a business, see Interpretation Bulletin IT-434R, Rental of Real Property by Individual, and its Special Release.

•If you are a co-owner of a property, you have to determine if a partnership exists before filling in the Identification part below. To determine if you are in a partnership, see Income Tax Folio S4-F16-C1, What is a Partnership?

•For information on how to fill out this form, see Guide T4036, Rental Income.

Part 1 – Identification

Your name

Your Social Insurance Number

Your address

City

PROV./TERR.

Postal code

Fiscal period

Date (YYYYMMDD)

to

Year

Month Day

Was this the final year of your rental operation?

Yes

No

from

1

2

3

1

Your percentage of

Tax shelter identification number (8 characters)

Partnership business number

the partnership

%

Industry code

5

3

1

1

1

1

Name of person or firm preparing this form

Business number/Account number

Address of person or firm preparing this form

City

PROV./TERR.

Postal code

Part 2 – Details of other co-owners and partners

	Co-owner or partner's	Share of net	$	Percentage	%
	name and address	income (loss)		of ownership
	Co-owner or partner's	Share of net	$	Percentage	%
	name and address	income (loss)		of ownership
	Co-owner or partner's	Share of net	$	Percentage	%
	name and address	income (loss)		of ownership

Part 3 – Income

In most cases, you calculate your rental income using the accrual method. If you have no amounts receivable and no expenses outstanding at the end of the year, you can use the cash method.

List the addresses of your rental propertiesNumber of unitsGross rents

1

2

3

Enter the total of your gross rents in the year you receive them (amount 1 plus amount 2 plus amount 3). . . . . . . . . . . . . . . . . . . 8141

Other income (for example, premiums and leases, sharecropping) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8230

Total gross rental income – Enter this amount on your Income Tax and Benefit Return on line 12599 (line 8141 plus line 8230)	8299

T776 E (19)

(Ce formulaire est disponible en français.)

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Protected B when completed

Part 4 – Expenses

Total for personal portion (add the lines listed under "Personal portion")	9949
Deductible expenses (total expenses from amount A minus total personal portion on line 9949)								4
	. . . . .		. . . . . . . . . . . . . . . .	. . . . .
Net income (loss) before adjustments (total gross rental income from line 8299 minus deductible expenses from amount 4)					9369
Co-owner – calculate your share of net income from line 9369. Enter your result on amount 5 . .			. . . . . . . . . . . . . . . .	. . . . .
Other expenses of the co-owner – other deductible expenses you have as a co-owner which you did not deduct elsewhere					9945

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The capital cost allowance (CCA) you can claim depends on the type of rental property you own and the date you acquired it. Group the depreciable property you	Protected B when completed
own into the appropriate classes. A specific rate of CCA generally applies to each class.

Area A – Calculation of capital cost allowance (CCA) claim

1

2

3

4

5

6*

7

8

9

10

11

12

13

Class

Undepreciated

Cost of additions

Cost of additions

Proceeds of

UCC after additions

Proceeds of

UCC adjustment

Adjustment for

Base amount

CCA

CCA for the year

UCC at the end of

number

capital cost (UCC)

in the year

from column 3

dispositions

and dispositions

dispositions

for current-year

current-year

for CCA

Rate

(col. 10 multiplied

the year

at the start of the

(see Area B and C

which are for AIIP

in the year (see

(col. 2 plus col. 3

available to reduce

additions of AIIP

additions subject to

(col. 6 plus col. 8

%

by col. 11 or a

(col. 6 minus col.

year

below)

or one or more

Area D and E

minus col. 5)

additions of AIIP

and ZEV (col. 4

the half year-rule

minus col. 9)

lower amount)

12)

zero-emission

below)

and ZEV (col. 5

minus col. 7)

1/2 multiplied by

vehicles (ZEV)

minus col. 3, plus

multiplied by the

(col. 3 minus col. 4

(new property must

col. 4). If negative,

relevant factor. If

minus col. 5). If

be available for

enter "0"

negative, enter "0"

negative, enter "0"

use in the year)

Note 1

Note 2

Note 3

Total CCA claim for the year**: Total of column 12 (enter the amount on line 9936 of Part 4,

►

i

amount i minus any personal part and any CCA for business-use-of-home expenses***)

*If you have a negative amount in column 6, add it to income as a recapture under 'Recaptured capital cost allowance' on line 9947. If no property is left in the class and there is a positive amount in the column, deduct the amount from your income as a terminal loss under 'Terminal loss' on line 9948. For more information, read Chapter 3 of Guide T4036.

**For information on CCA for "Calculation of business-use-of-home expenses," see "Special situations" in Chapter 4 of Guide T4002. To help you calculate the capital cost allowance claim, see the calculation charts in Areas B to F.

***Sole proprietors and partnerships - enter the total CCA claim for the year from amount i on line 9936. Co-owners - enter only your share of the total CCA claim for the year from amount i on line 9936.

Note 1: Columns 4, 7, and 8 apply only to accelerated investment incentive properties (AIIPs) (see Regulation 1104(4) of the Income Tax Regulations for the definition), zero-emission vehicles, and zero-emission passenger vehicles. In this chart ZEV represents both zero-emission vehicles and zero-emission passenger vehicles. An AIIP is a property (other than ZEV) that you acquired after November 20, 2018 and became available for use before 2028. A ZEV is a motor vehicle included in Class 54 or 55 that you acquired after March 18, 2019 and became available for use before 2028. For more information on AIIP and ZEV, see guide T4036.

Note 2: The proceeds of disposition of a zero-emission passenger vehicle (ZEPV) that has been included in Class 54 and that is subject to the $55,000 capital cost limit will be adjusted based on a factor equal to the capital cost limit of $55,000 as a proportion of the actual cost of the vehicle. For dispositions after July 29, 2019, the government proposes that the actual cost of the vehicle be adjusted for any payments or repayments of government assistance that you may have received or repaid in respect of the vehicle. For more information on proceeds of disposition, read Class 54 in guide T4036.

Note 3: The relevant factors for properties available for use before 2024 are 2 1/3 (classes 43.1 and 54), 1 1/2 (class 55), 1 (classes 43.2 and 53), 0 (classes 12 and 13), and 1/2 for the remaining accelerated investment incentive properties.

For more information on AIIP and ZEV, see Guide T4036 or go to canada.ca/taxes-accelerated-investment-income.

List all equipment or other property you acquired or improved in the current tax year, and group them into the appropriate classes. Equipment includes appliances such as a washer and dryer; maintenance equipment such as a lawn mower or a snow blower; and other property such as furniture and some fixtures you acquired to use in your rental operation.

Area B – Equipment additions in the year

Total equipment additions in the year (total of column 5) 9925

List all building or leasehold interest additions you acquired or improved in the current tax year. Group the depreciable property you own into the appropriate classes.

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Area D – Equipment dispositions in the year

Total equipment dispositions in the year (total of column 5) 9926

Area E – Building dispositions in the year

	Total building dispositions in the year (total of column 5) 9928
Area F – Land additions and dispositions in the year
	9923
Total cost of all land additions in the year	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total proceeds from all land dispositions in the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9924

See the privacy notice on your return.

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