Glossary

T776

Statement of Real Estate Rentals (CRA form T776)

A T776 (Statement of Real Estate Rentals) is the CRA form used to report the gross rent and deductible expenses of Canadian rental property and calculate the net rental income or loss. Residents file it with their T1; a non-resident who elects under Section 216 uses it to be taxed on net rental income instead of 25% of the gross.

Who it applies to: Anyone reporting Canadian rental income — including a non-resident filing a Section 216 return.

Key facts

Form: CRA T776
Filed with: T1 return (residents) / Section 216 return (non-residents)
Reports: Gross rent, expenses, and optional CCA
Result: Net rental income or loss

How it works

List the property's gross rent and each deductible expense (interest, property tax, insurance, repairs, management fees) for the year.
Optionally claim Capital Cost Allowance (CCA) on the building — but CCA cannot create or increase a rental loss.
The net rental income flows to your return; for a non-resident under Section 216 it replaces the flat 25% withholding on gross rent.

Go deeper: Section 216 Election: Complete Guide

Related terms

Section 216

An election that lets a non-resident landlord be taxed on NET rental income at graduated rates instead of 25% of gross — usually producing a refund.

Part XIII tax

Canada's flat 25% withholding tax on certain amounts paid to non-residents, including gross rent. Remitted by the payer by the 15th of the next month.

NR4

The Canadian information slip a payer or agent files each year to report gross rent paid to a non-resident and the Part XIII tax withheld on it. Due March 31.

Frequently asked questions

Do non-residents file a T776?

Yes — a non-resident who elects under Section 216 to be taxed on net rental income reports that income on a T776 attached to the Section 216 return, rather than paying 25% Part XIII tax on the gross rent.

Can CCA on a T776 create a rental loss?

No. You can claim Capital Cost Allowance to reduce net rental income to nil, but CCA cannot create or increase a rental loss on the T776 — the deduction is capped at your remaining net income.

This definition is general information, not tax advice. See the full guide above and verify current rules with the CRA or IRS. ← Back to the glossary

BorderBird helps cross-border landlords track rent and prepare CRA NR4 and IRS Schedule E filings — see how it works.