Tax Season 2026: What Rental Property Owners Need to Know
April has arrived, and with it comes tax season, that time of year when the best intentions to file early tend to give way to a last-minute scramble on April 29th. If that sounds familiar, you’re not alone. The good news is that Power Properties® has everything you need to make this process as straightforward as possible.
Your Annual Rental Property Statement
Power Properties® provides an annual rental property statement to every property owner, and yours is ready and waiting in your owner’s portal. This document consolidates everything you need for your tax return into one place.
Important note: The 2025 annual statement is located beside or below your January 2025 statement in the portal, not next to your December 2025 statement. Please keep this in mind when searching for the document.
Your annual statement includes the following key figures:
Gross rental income for the year
Total expenses broken down by category
Net rental income
In addition to your annual statement, you will also need your mortgage statement and your property tax bill. If you are not using Power Properties’ insurance, your insurance bill will be required as well. Together, these documents should provide all the information needed to complete the rental property section of your tax return.
Understanding Your Deductible Expenses
As a reminder, all expenses directly related to your rental property are tax-deductible against your gross rental income — provided you own your properties personally rather than through a corporation. The following expenses are eligible for deduction:
Mortgage interest (typically one of the most significant deductions)
Property taxes
Condominium fees (if applicable)
Insurance premiums
Power Properties management and leasing fees
All repairs and maintenance costs
Community association fees
Utilities, where included in the rent or paid during vacancy periods
When combined, these deductions can be substantial. This is particularly valuable for owners whose properties are in a negative cash flow position. For example, if your monthly expenses exceed rental income by $500, that represents a $6,000 annual loss. At a 40% tax bracket, that loss could reduce your tax liability by $2,400, a meaningful offset that helps ease the burden of carrying costs.
Notice to Non-Resident Clients: S216 Filing Requirement
Non-resident clients who are completing an S216 return — whether personally or through an accountant — are required to provide Power Properties® with proof of filing by May 31, 2026. Failure to do so will result in Power Properties® filing on your behalf.
If Power Properties® will be completing the filing for you, please ensure that your actual expense forms are submitted as soon as possible so we can process your return accurately and on time.
About Power Properties Ltd.
Founded in 1980, Power Properties has been providing hassle-free property management services to property owners, property investors and non-residents with homes in Calgary, Edmonton, Lethbridge and Medicine Hat for over 45 years. Our full-service property management includes everything from move in to move out, so you don’t have to worry about the day-to-day operations of your rental property. With a team of licensed professionals, years of experience, and award-winning service, you can rest assured that your property is in good hands.
