1) Rental Income (T776)

Dax Jones purchased a new property on May 1st 2019 with the intent to use it as a rental. The purchase price was $650,000. The land portion was valued at $50,000. He began advertising to find his first tenant right away. The following additional information was provided to you by Dax who has asked you to prepare his T776 form for 2019:

• The first tenant moved in on June 1st and is paying $800 per month to rent one room

• Two more tenants moved in on Sep 1 and Oct 1 and signed leases for $800 per month for

  one room each. There is one more vacant room which is still available.

• At the end of the year there was $800 in rent receivable still outstanding

• The mortgage payment on the new house was $1,200 per month

• Dax advertised online to find tenants and had spent $700 by the end of 2019

• Property taxes paid for the year totaled $2,400

• Mortgage interest paid for the year totaled $5,600

• Home insurance cost $500 for the year

• Snow removal/lawn mowing cost $600 for the year

• Tenants did not pay for utilities. The electricity bill was $150 per month.

  Required: Prepare a completed T776 form using the fillable pdf provided. (Reminder: Download the pdf form first and the open in Adobe Acrobat and fill in)