Bookkeeping For Landlords

Rental property owners often underestimate the complexity of real estate bookkeeping. From mortgage interest to repairs, each transaction affects your taxable income and CRA audit exposure. Mackisen CPA Auditors Montreal provides specialized bookkeeping and accounting services for landlords to ensure full CRA and Revenu Québec compliance while maximizing eligible deductions.

Legal and Regulatory Framework
Income Tax Act (Canada) Section 20(1): Defines deductible rental expenses including mortgage interest, repairs, and management fees.
Income Tax Act (Canada) Section 230(1): Requires detailed financial records for all rental income and expenses.
CRA Guide T4036: Outlines bookkeeping standards for rental property owners.
Taxation Act (Quebec) Section 34: Mandates recordkeeping for property-related QST or GST filings.
CPA Canada Handbook Section 3061: Covers accounting for tangible capital assets such as rental properties.

Key Court Decisions
Beaudoin v. The Queen (2020): Denied deductions for undocumented property repairs.
Lincora Group v. Quebec (2019): Penalized a landlord for missing QST documentation.
Tremblay Holdings v. The Queen (2021): Reinforced that depreciation and expenses must be accurately categorized.
Royal Bank v. Canada (2019): Validated CPA-prepared rental statements for loan underwriting.
Desjardins v. Quebec (2021): Highlighted CRA’s right to review property management expense claims.

Why CRA Targets / Issues / Enforces
CRA audits landlords frequently due to underreported rental income or misclassified expenses. Missing receipts or inaccurate depreciation schedules can lead to reassessments. Mackisen CPA Auditors Montreal ensures your rental books are fully organized, compliant, and audit-proof.

Mackisen Strategy
Income Tracking — Record rent payments, deposits, and interest accurately.
Expense Classification — Separate repairs, improvements, and maintenance for proper deduction treatment.
Depreciation Management — Apply capital cost allowance correctly to each property.
GST/QST Compliance — File accurately for commercial and short-term rental properties.
Financial Reporting — Prepare annual summaries for CRA filing and mortgage renewals.
CPA Oversight — Review financials to ensure compliance and maximize deductions.

Powering Client Needs and Property Success
A Montreal duplex owner recovered $12,000 in missed deductions after Mackisen restructured their rental expense records. A Quebec investor avoided reassessment when Mackisen verified all income documentation. A Toronto landlord simplified year-end filing using Mackisen’s automated rental accounting system.
How Mackisen Clients Benefit

• Accurate rental income and expense tracking

• Maximized tax deductions under CRA rules

• Audit-ready financial statements

• CPA oversight for all property financials

• Simplified year-end tax filing

Common Questions
Do I need to collect GST/QST on rent? Only for short-term or commercial rentals.
Can I deduct mortgage payments? Only the interest portion, not principal.
How long should I keep property receipts? Seven years minimum.
Does CRA require a separate account for rentals? Yes, for clarity and audit compliance.
Can Mackisen manage multiple properties? Absolutely—our systems scale to portfolios.

Why Mackisen
Mackisen CPA Auditors Montreal helps landlords turn complex bookkeeping into simple, profitable management. We ensure every expense and rental transaction meets CRA and Revenu Québec standards—accurately, efficiently, and securely.