Rental Income = Revenue generated from rental units during a fiscal year.  This includes any deposit or last month rent collected from your tenants.

You can deduct any reasonable expenses you incur to earn rental income. The two basic types of expenses are current expenses and capital expenses.

For more information on what we consider a current or capital expense, see Current expenses or capital expenses.

If you are modifying a building to accommodate persons with disabilities, buying an older building, or encounter other situations, see Capital expenses – Special situations.


Some expenses your incur are not deductible. For more information see Expenses you cannot deduct.


The following is a list of expenses that are deductible:

Any cost incurred to the renting of the units may qualify against the revenue generated as rental income.