Personal Finance

Small Business Account to collect rent - need to file taxes as business with CRA?

  • Last Updated:
  • Jan 15th, 2017 7:23 am
Deal Addict
Nov 1, 2009
2646 posts
81 upvotes

Small Business Account to collect rent - need to file taxes as business with CRA?

Hey guys. Don't want the hassle of dealing with tenant cheques and eTransfers, etc. Was thinking of setting up a business account so that I can get pre-auth debits from tenant:
http://www.rbcroyalbank.com/business/ac ... count.html

Not sure if the RBC one above allows it, but I heard CIBC does. Anyway, if I do open such an account, would I need to start filing business taxes with the CRA? Thx.
1 reply
Newbie
Dec 2, 2006
39 posts
4 upvotes
Waterloo
Whether your rental income is business income or not does not depend on the kind of bank account you use, it depends on the kinds of services you provide to your tenants. Here are some links that can help you understand whether your rental income is truly rental income, or business income:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/ ... s-eng.html

http://www.taxtips.ca/realestate/rentalorbusiness.htm

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