What Documents Should Non-Resident Landlords Keep for CRA Compliance?
If you’re a non-resident earning rental income from Canadian property, good record-keeping isn’t optional — it’s your first line of defense in case the Canada Revenue Agency (CRA) asks questions.
Many landlords focus on the forms they must file, like the NR6 or Section 216 return, but forget that proof of income and expenses is equally important. The CRA can audit non-residents up to six years after filing, and if you can’t back up your claims, you risk losing deductions or even facing penalties.
Here’s a clear guide on what records to keep, how long to keep them, and how to organize them properly.
1. Proof of Rental Income
You must keep detailed records showing how much rent was received, when, and from whom.
Examples include:
Copies of lease agreements or rental contracts
Rent receipts issued to tenants
Bank deposit slips or e-transfer confirmations
Monthly statements from your property manager
NR4 slips (if applicable) summarizing rental income and tax withheld
If you accept cash payments, keep signed receipts and deposit records. The CRA considers missing income documentation a red flag.
2. Expense Receipts and Invoices
Under Section 216, you can claim deductions for expenses — but only if you can prove them. Keep:
Property tax statements
Mortgage interest summaries from your bank
Insurance policy statements
Utility bills (if paid by you)
Repair and maintenance invoices
Cleaning, landscaping, or management fee receipts
Make sure receipts clearly show the vendor name, date, amount, and description of service. The CRA often disallows handwritten or vague receipts.
3. CRA Correspondence and Forms
Keep copies of all official forms and correspondence for each tax year:
NR6 forms and CRA approval letters
Section 216 returns and Notices of Assessment
NR4 slips and summaries from property managers
Any letters or notices received from the CRA
Store both digital and paper copies. These documents prove that you filed on time and complied with all requirements.
4. Proof of Ownership and Management
The CRA may also ask for documents confirming who owns and manages the property. Keep:
Property purchase agreement and deed
Mortgage statements
Property management contracts
Communication with your agent or manager
This helps show that you’re the legitimate taxpayer responsible for the income and not hiding ownership.
5. Currency Conversion and Payment Records
If you live abroad and receive rent in another currency, keep exchange rate records used when reporting Canadian income. The CRA may verify that your figures match the Bank of Canada annual rates.
6. Retention Period
The CRA requires that non-residents keep all supporting records for at least six years after the end of the tax year. If an audit is underway or you’ve filed an appeal, keep everything until it’s resolved.
