Jack Lajoha is a resident of Spain, but has a rental property in Canada. The gross rents are $1,500 monthly, and are collected by Jack’s agent, Tom Kelly. From the rental income, Tom pays his rental agent’s fee, the mortgage, property taxes, and maintenance totalling $14,400. Available CCA on the property will be $5,000 for 2016. On average there is about $300 a month net cash available.

REQUIRED

How does Jack Lajoha account for this rental income in Canada?