October Is the Time to Plan Your Rental Property Taxes

Rental income is taxable in Canada, and the deductions available to landlords are generous — but most of them hinge on decisions you make before December 31. Once the calendar flips, a repair you could have written off this year becomes next year's expense, and a CCA election you could have made is gone. October is the right time to plan.

What you can deduct

The general rule is that you can deduct expenses reasonably incurred to earn rental income. The main categories Ottawa landlords use:

• Property taxes — a significant deduction in Ottawa
• Mortgage interest — interest only, never principal
• Insurance premiums — landlord policy premiums
• Property management fees — including the fees you pay us
• Repairs and maintenance — restoring the property to its original condition
• Utilities — if paid by you rather than the tenant
• Advertising and tenant screening costs
• Professional fees — accounting, legal, bookkeeping
• Travel — reasonable costs to visit and supervise the property

The repair vs. improvement distinction — and why October matters

This is the most consequential line in rental taxation:

Why October? Work done in November/December is deductible in this tax year. Work done in January 2027 is not. If you have repairs on the list, completing them before year end is a legitimate timing decision. Note there's a limit: if repairs are done as part of a larger renovation, CRA may treat the whole thing as capital.

Capital Cost Allowance: the decision that catches people out

You can claim Capital Cost Allowance (CCA) to depreciate the building and eligible assets over time. It reduces taxable income now — but there's a trap.

CCA claimed on the building is recaptured on sale and taxed as regular income at your full marginal rate, with no capital gains inclusion benefit. Many landlords deliberately choose not to claim CCA on the building to avoid a large tax bill on sale. Whether to claim it depends on your exit plans, and it's a decision best made with an accountant — not by default.

This matters in October because the CCA decision affects your year-end filing, and it's worth modelling before the year closes.

Your October/November document checklist

• Bank statements and receipts for all property expenses and income
• Mortgage statement showing interest paid to date
• Property tax bill — confirm the amount paid
• Contractor invoices — scan and file while you can still read them
• Management fee statements — these are deductible and often forgotten
• A clear list of repairs vs. improvements with photos for significant work
• Utility bills on units where you pay them

How good records make this easy

The landlords who find tax season painless aren't tax experts — they have clean records. Professionally managed properties come with organised monthly statements, a clear annual summary of income and expenses, and itemised maintenance costs with invoices attached. That's the difference between an hour with your accountant and a week of digging.

For more on the numbers, see our Ottawa landlord tax guide, our breakdown of capital gains on rental property, and the Ottawa property tax guide.

This article is general information for Canadian rental property owners and is not tax advice. Tax rules change and every situation differs — consult a qualified accountant about your circumstances.