Is rental loss included in gross income, or only the rent collected?

As per CRA: You have a rental loss if your rental expenses are more than your gross rental income. If you incur the expenses to earn income, you can deduct your rental loss against your other sources of income.

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For tax purposes, rental income and expenses need to be reported, including rental losses. Here’s how it works:

1. Rental Income: All rent received should be included in gross income.

2. Deductible Expenses: You can deduct expenses related to the rental activity, such as repairs, management fees, property taxes, mortgage interest, and depreciation.

3. Net Rental Income or Loss: Subtract the total allowable expenses from your total rental income. If expenses exceed the rental income, this results in a rental loss.

4. Reporting: The net result, whether it's income or a loss, should be reported on your tax return.

Hence, the 'gross income' includes only the rental income collected. The rental loss (if any) is factored in after considering the allowable deductions against this gross income. If unsure about specific rules or how they apply to your situation, it’s wise to consult a tax professional or refer to relevant tax authority guidance.