Rental Income in Sherbrooke — Tax Returns for Rental Property Owners
Do you own a rental unit, a plex or a rental building? AM Comptable CPA prepares the reporting of your rental income on your federal and Québec returns and helps you meet the related tax obligations, such as RL-31 slips.
Free first consultation · In person in Sherbrooke or remotely via Teams
What our service includes
Rental income and expenses
We report your rents and eligible expenses, such as municipal and school taxes, insurance, mortgage interest, maintenance and repairs, on form T776 (federal) and form TP-128 (Québec).
Repairs, improvements and depreciation
We distinguish current repairs, deductible in the year, from improvements that must be added to the cost of the building. We assess with you whether claiming capital cost allowance makes sense.
RL-31 slips
If you rent out dwellings in Québec, you must file an RL-31 slip for each eligible dwelling rented on December 31. We prepare and file your RL-31 slips on time.
Short-term rentals
Do you rent out a unit or a cottage for short stays (Airbnb-type)? We explain your tax obligations and prepare the related returns: income tax, GST/QST and the tax on lodging, depending on your situation.
Sale of a rental property
Selling a rental property can result in a capital gain and, if capital cost allowance was claimed, recaptured depreciation. We calculate these amounts and report them for the year of the sale.
Co-owners and corporations
Do you own a building with other people? We report your share of the income and expenses. If the building belongs to your corporation, its rental income is reported on its T2 and CO-17 returns. Corporate tax →
Who is it for?
- Owners of a duplex, triplex or plex who live in one of the units
- Owners of one or more rental buildings
- People who rent out part of their home or a condo
- Short-term rental operators
- Co-owners and corporations that hold rental properties
How it works
1
Book an appointment
A free first conversation to understand your properties and your needs.
2
Send us your documents
Bring your documents to our office or send them by email. With your authorization, we can also view certain slips in the Revenu Québec and CRA online services.
3
Preparation and review
We prepare your returns and slips, then review the amounts before presenting them to you.
4
Finalization
We explain the results and file your returns only after you authorize us to.
Why choose AM Comptable CPA?
- A firm of Chartered Professional Accountants (CPA) located at 819 King Street West, Sherbrooke
- Your federal and Québec returns prepared together
- Clear explanations of your results and of the records to keep
- Services in English and French, in person or via Teams
Frequently asked questions
What documents do I need to provide?
Generally: a record of rents received for the year, your expense invoices (municipal and school taxes, insurance, maintenance, repairs, utilities you pay for tenants), your annual mortgage interest statement and, if you bought or sold a building, the deed of purchase or sale. For new clients, last year’s returns help us carry forward the depreciation already claimed.
What is the difference between a repair and an improvement?
A repair that restores the building to its original condition is generally a current expense, deductible in the year. An expense to acquire property, add to it or improve it is generally a capital expense: it is added to the cost of the building and may be depreciated over several years.
Should I claim capital cost allowance?
It is optional. Capital cost allowance generally cannot be used to create or increase a rental loss, and depreciation claimed may have to be added back to your income when the building is sold. We assess with you what suits your situation.
Who must file RL-31 slips, and by when?
The owner of a rental building must file an RL-31 slip for each eligible dwelling for which rent was paid or payable on December 31. The slip must be given to the tenant and filed with Revenu Québec no later than the last day of February of the following year.
I offer short-term rentals. What are my obligations?
According to Revenu Québec, operators must, among other things, register their tourist accommodation establishment, register for the tax on lodging, register for GST and QST depending on their situation, and report their income. Federally, since 2024, expenses related to a short-term rental that does not comply with provincial or municipal registration requirements are not deductible.
I am selling my rental property. What is the tax impact?
The sale may result in a capital gain and recapture of the depreciation claimed over the years. Contact us as soon as the sale is planned or completed so we can prepare the calculations with the right documents.
My building belongs to my corporation. Can you help?
Yes. A corporation’s rental income is reported on its T2 (federal) and CO-17 (Québec) returns, which we prepare together with its financial statements. See our Corporate Tax page.
See also: All our tax services · GST/QST returns · Québec tax deadline calendar
Need help with your rental income?
Whether you have a single unit or several buildings, AM Comptable CPA can prepare your returns and your RL-31 slips.
Phone : 819-580-7974 · Email : info@amcomptable.ca