How to Report Passive Income on your Taxes?

Here's how to report passive income on your taxes:

• Identify the Type of Passive Income: Common types include rental income, interest income, dividends, and royalties.
• Use the Correct Tax Forms - Report rental income using Form T776 (Statement of Real Estate Rentals). Report interest and dividend income by filling out Schedule 4 of your T1 General Income Tax and Benefit Return.Report royalties from business activities on Form T2125 (Statement of Business or Professional Activities)
• Keep Accurate Records: Maintain detailed records of all passive income received, including dates, amounts, and sources.
• Deduct Eligible Expenses.5.File Your Tax Return: Ensure all forms are filled out accurately and submit them with your T1 General Income Tax and Benefit Return by the tax deadline.

If you're unsure or your situation is complex, consider consulting a tax professional.