Receipt for Rent - Income Tax Question

[Andrew415]

Hi All,

I just have a fairly simple question. First off, landlording has been great so far! Knock on wood!. The issue is I have not done my taxes for 2011 (due to an illness and move across the country).

My question is when claiming rental income I assume I need to submit monthly rent receipts which I have never made or given my tenant. (he just gives me post dated checks and I deposit them).



I do understand I am probably doing this wrong and I should type out monthly rent receipts for the past year hes been renting. What exactly should these receipts consist of? Can I make them pretty simple?



If it came down to it I could show my monthly deposit history with my bank, but what do you guys think?

Thanks,

Andrew

 

[invst4profit]

You are not required to provide receipts to tenants for your tax purposes. Receipts for tenants are used solely for their taxes.

Having said that receipts are not required to be provided to tenants unless they ask for them according to the RTA. It is their problem not yours. I provide my tenants one receipt for the years rent payments for their tax purposes.



As long as your rent payments are in the form of checks then you have all the proof you require for your taxes. I provide my accountant my numbers and unless audited that is all that is required. No receipts , no proof just the numbers.



Assuming your tenant requests a receipt you can keep it very simple. Title it TAX RECIEPT, state the year, include tenant name, unit address, amount paid for the year, paid in full and your signature.

You can search on the internet for examples of simple receipts and modify to your needs.



http://www.solutionone.ca/wp-content/uploads/2011/02/Rent-Receipt_for_Income_Tax_Purposes_Template.pdf

 

[Thomas Beyer]

Bank Statements and a lease are good enough. You have to file a T776 with your annual income tax filings where you list all rents and all eligible expenses, incl. CCA ( aka depreciation).

 

[bradyloewen]

We keep it pretty simple with an app call EZ receipt. Can email it or print it right from the app and the app stores all your previous receipts for you. (although we print ours out and save them in the applicable hard folder).



Free app by the way.



Brady

 

[Andrew415]

Thank you very much for the replies and the information. I just thought I had to provide it because I'm so late. I do it though ufile and when i'm arranging everything it says to place receipts in order etc.



I do have a few more questions since I have you guys here. The same goes with the condo fee's of the property, Will I need to get a receipt from my management company (25 dollar fee). For all condo fee's paid in 2011.



Lastly just out of curiosity on the statement of real estate rentals where you put your expenses. How much percentage do you get back?



Thank you again,



Andrew

 

[Andrew415]

duplicate

 

[Thomas Beyer]

Why not get an expert to do it for you for a small fee.



As a rule of thumb, you pay little to no taxes on rental income properties while holding with a sizeable mortgage due to expenses and CCA. You can only reduce your income taxes (" getting it back ") through actual and reasonable expenses exceeding your collected income, not through CCA.

 

[Andrew415]

I would rather learn more about it and do it myself.



I have been doing it myself the past couple of years by myself; and it was quite simple as i'm a single guy with no children. It just seems harder this year because I have missed deadline so I must mail it in with all receipts.



I was just curious as to how much is deducted off lines 8690, 8871, 9180.



Andrew

 

[Thomas Beyer]

Don't major in minors.

 

[Andrew415]

I like to major in everything.

 

[Thomas Beyer]

Majoring in everything means majoring in nothing. You have to be focused, and find others to do the rest. Yes, you can paint, you can fix toilets, you can cut your own hair or remove your own teeth, but usually that requires special expertise and tools. Expertise is acquired through formal education, informal education and time spent at the skill in queSion, honed over years.

 

[MosaicRentals]

I feel the same way... to a point lol



Anything that affects me I like to have at least a working knowledge of. To me its very important to understand the workings of it all... maybe its my need to control what directly affects me.

 

[Thomas Beyer]

Hand your accountant the receipts or bank statements and tell him: make it low and make it legal. Then focus on finding more real estate or more money from JV partners.

 

[ThomasBrown]

No, a monthly deposit history wouldn't do.



You need to submit your monthly rent receipts. As you haven't submitted any, and you're aware that its wrong, I seriously advise you to start doing so.

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[Thomas Beyer]

Actually, in Canada, you dot have to submit any receipts with your tax filings. Just have proof, such as bank statements, handy in case CRA asks.

 

[Thomas Beyer]

Actually, in Canada, you don't have to submit any receipts with your tax filings. Just have proof, such as bank statements, handy in case CRA asks.