‍How Do I Track My Rental Property Income and Expenses? Tax Education from a Canadian CPA

Tracking rental property income and expenses can seem overwhelming, but it doesn’t have to be. As a CPA, I’ve developed a simple system to make it easier. Follow these steps, and you’ll have your finances organized for tax time in no time!

Step-by-Step Guide to Tracking Your Rental Income and Expenses

1. Log In to Your Bank Account
   Start by logging into the bank account tied to your rental property. If you don’t have a dedicated account, consider setting one up—it makes tracking much easier.
2. Filter Transactions for the Whole Year
   Filter your account’s transaction history for 2024 (or the relevant year).
3. Export the Data
   Download the transaction list directly from your bank or copy and paste it into an Excel spreadsheet.
4. Cleanse the Data
   • Assign categories to each transaction (e.g., rent income, utilities, repairs, property taxes).
   • Remove irrelevant or duplicate entries.
5. Create a Pivot Table
   Use the pivot table feature in Excel to summarize your income and expenses by category. This makes it easy to identify trends or discrepancies.
6. Adjust Mortgage Interest
   • Download your mortgage interest statement from your bank.
   • Replace the full mortgage payment with the interest-only amount for accurate tax reporting.

Important Notes

1. My CPA Method:
   This is how I personally track rental properties for myself and my clients.
2. All-in-One Account:
   Having all rental transactions in a dedicated bank account simplifies things. If you’re using multiple cards or accounts, you’ll need to manually adjust for missing expenses or income.
3. Need Help?
   Tracking manually can get tricky. If you’re stuck, download my free rental property tracking template here: [Insert Link].

Final Thoughts

Keeping your rental property income and expenses organized is critical for tax time. A little effort upfront can save you headaches and ensure you’re claiming all eligible deductions. Whether you’re a seasoned landlord or just starting out, this system works like a charm!

For more tips or personalized advice, feel free to reach out. And remember, staying organized is the key to staying ahead.

For more information, consult Canada.ca and if you’re looking for a CPA in Ottawa, please don’t hesitate to reach out.

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This is not legally binding tax advice. This is educational analysis. Say hello if you need help.

hello@taxesmadesimple.ca

WhatsApp - 613.600.4194

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