To report rental income in Wealthsimple Tax:
Add the Rental Income section to your tax profile
Identification
- Enter property details and ownership information
- For first-time rentals, enter the start date of your rental operation
- If the property is outside of Canada, enter the street address, city, and country, but use your Canadian postal code
Co-owner (or partner) information (if applicable)
- Enter your percentage of ownership and co-owner details
- You can share Rental Income with co-owners who are completing their returns in the same Wealthsimple account
Income & Expenses
- Report gross rents and other related income
- Enter current expenses (short-term benefits)
- For personal use, choose one of three methods:
- Enter only rental expenses if tracked separately
- Use the "Personal use portion" field if all expenses have the same rate
- Enter personal portion for each expense if rates differ
- Co-owners should enter total expenses for the property
Capital Cost Allowance (CCA)
- You'll be asked, "How would you like to report your CCA?"
- Choose one of two options:
- Regardless of which option you choose, if you have a terminal loss, report it in the separate "Terminal loss" field provided. See step 5.
- "I'll report the totals only"
- Use this if you've already calculated your CCA or fall under certain limitations
- Simply enter your total CCA amounts in the provided fields
- "I need to calculate CCA"
- Choose this option if you want Wealthsimple Tax to help calculate your CCA
- Follow step 3 onward
- "I'll report the totals only"
- Regardless of which option you choose, if you have a terminal loss, report it in the separate "Terminal loss" field provided. See step 5.
- Use the Additions and Dispositions table:
- Type: Select if you acquired or disposed of property
- Class: Choose the relevant CCA class
- AAIP/ZEV: Check the box if claims are eligible for enhanced first-year CCA
- Total cost/Proceeds: Enter amount paid or received
-
PUR(%): Enter personal use rate, if applicable
- Business part and the half-year rule: For most property acquisitions, you can only claim half of the normal maximum CCA in the year of purchase. Wealthsimple Tax automatically applies this rule in the "Business part" column for additions.
- Use the CCA Calculation table:
- Class: Select relevant CCA class
- UCC Start: Enter prior year's closing UCC balance
- Additions/Proceeds: Automatically filled from previous table
- PUR(%): Enter personal use rate for the year, if applicable
- Max CCA: Automatically calculated (prorated for incomplete years, i.e. first or last year)
-
CCA Claimed: Enter amount you want to claim, if you want to claim a different amount than the maximum allowable CCA
-
UCC and recapture:
- Recapture occurs when you sell a depreciable property for more than its undepreciated capital cost (UCC)
- The recapture amount is the lesser of:
- The CCA you've claimed on the property in previous years
- The gain you've realized on the sale (sale price minus UCC)
- Recapture is included in your income and is taxed at your regular income tax rate
- Wealthsimple Tax automatically calculates and includes recapture in your income when applicable
-
UCC and recapture:
-
Terminal Loss:
- A terminal loss occurs when you dispose of all the property in a CCA class and the remaining undepreciated capital cost (UCC) is more than the proceeds of disposition
- The amount of the terminal loss is the remaining UCC in the class after the disposition
- Terminal losses are deductible from your income in the year they occur
Motor Vehicle Expenses (if applicable)
If you didn’t keep a detailed log book and receipts, you might not want to claim this amount. The CRA is known to often request records for motor vehicle claims.
- Claim vehicle costs related to your rental property
- Separate tabs for personal and co-owned/partnership vehicles
Other
- Enter GST/HST number, tax shelter number (if applicable)
- Indicate first or final year of business
- Report any debts related to the property
Wealthsimple Tax CCA tables don’t support:
- Assets (other than Class 10.1 vehicles) that are able to be allocated to their own class (rather than grouped with items of the same class)
- Assets that are eligible for straight-line depreciation
Important notes:
- You can't use CCA to create or increase a rental loss
- Keep detailed records of all income and expenses
- Choosing the "report totals" option sends the same information as using the Wealthsimple Tax CCA tables, so your audit risk will not increase
- Québec residents have additional provincial reporting requirements
- Use the “Add another unit” button to report income from each additional property
Québec Residents
If you're a Québec resident, you'll need to provide additional information for your provincial tax return:
- Québec CCA Calculation
- Wealthsimple Tax provides a separate table for claiming CCA on your Québec return
- CCA amounts may differ between your federal and provincial returns
- Some CCA classes have different rules for Québec compared to federal regulations
- The Québec CCA Calculation table functions similarly to the federal CCA table, with adjustments for provincial rules
- Costs Incurred for Work on a Property
- For contractor work on your rental property, Revenu Québec requires additional information
- You'll need to report details about the contractors and the work performed
Important notes:
- Be aware of the differences in CCA rules between federal and Québec returns
- Keep detailed records of all contractor work for your Québec rental property
For more detailed guidance, refer to the CRA's rental income guide.
If you have questions about reporting rental income or expenses, consider consulting with a tax expert. If you need assistance entering this information in Wealthsimple Tax, please contact Wealthsimple support.
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