6 worked Multiple Rental Property Tax Return case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to multiple rental property tax return work, not a specific client's file.
Case Study 1 · Structure rebuilt
Corporate Structure Rebuilt For $44,000 Of Annual Savings — Student Filer, Surrey
Client: A full-time student with tuition credits and part-time earnings · Where: Surrey, British Columbia · Engagement: 6 weeks, fixed fee
Saving per year$44,000
DocumentationComplete
Transfer basisRollover
The situation — A full-time student with tuition credits and part-time earnings, Surrey, British Columbia
The structure at a full-time student with tuition credits and part-time earnings in Surrey, British Columbia had been set up years earlier for a business that no longer existed, and years of small donation receipts claimed one at a time instead of pooled onto a single return had become expensive.
What we did for A full-time student with tuition credits and part-time earnings, Surrey, British Columbia
We obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A full-time student with tuition credits and part-time earnings, Surrey, British Columbia
$44,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 2 · Records and systems rebuilt
Books Rebuilt From Source, $20,000 In Unclaimed Input Tax Found — Self-Employed Consultant, Toronto
The situation — A self-employed consultant, Toronto, Ontario
A self-employed consultant in Toronto, Ontario could not answer basic questions about its own numbers, because three years of returns filed without the slips that had been mailed to an old address sat between the bank statements and the ledger.
What we did for A self-employed consultant, Toronto, Ontario
We carried the capital loss back against gains reported in the prior three years and generated a refund rather than a carry-forward balance, then documented the process so the work does not depend on any one person remembering how it was done.
The result — A self-employed consultant, Toronto, Ontario
Records rebuilt and reconciled, $20,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 3 · Scaling without breaking
Second-Province Expansion Handled, $50,000 Of Cash Released — Multi-Source Retiree, Red Deer
Client: A retiree drawing from three sources · Where: Red Deer, Alberta · Engagement: 8 weeks, fixed fee
Cash released$50,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A retiree drawing from three sources, Red Deer, Alberta
Revenue at a retiree drawing from three sources in Red Deer, Alberta was up sharply and cash was tighter than ever. Underneath it sat a rental property reported without any capital cost allowance analysis.
What we did for A retiree drawing from three sources, Red Deer, Alberta
We recalculated the instalments on the current year’s expected income rather than the prior year’s, which stopped the instalment interest from growing. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result — A retiree drawing from three sources, Red Deer, Alberta
$50,000 of cash was released from the working capital cycle, and the expansion completed with every registration and filing obligation covered from day one.
Case Study 4 · Objection and relief
$13,500 Of Penalties And Interest Cancelled On Relief — First-Year Physician, Halifax
Client: A physician in their first year of practice · Where: Halifax, Nova Scotia · Engagement: 6 weeks, fixed fee
Penalties and interest cancelled$13,500
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A physician in their first year of practice, Halifax, Nova Scotia
An assessment of $13,500 landed at a physician in their first year of practice in Halifax, Nova Scotia following a desk review. The auditor had not seen the records behind foreign accounts that had crossed the T1135 threshold two years earlier.
What we did for A physician in their first year of practice, Halifax, Nova Scotia
We filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them, then set out the legislative basis for the position alongside the documents supporting it.
The result — A physician in their first year of practice, Halifax, Nova Scotia
$13,500 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Client: A retiree splitting eligible pension income with a spouse · Where: Calgary, Alberta · Engagement: 3 weeks, fixed fee
Overpayment refunded$42,000
Late remittances sinceZero
ScheduleAutomated
The situation — A retiree splitting eligible pension income with a spouse, Calgary, Alberta
Remittances at a retiree splitting eligible pension income with a spouse in Calgary, Alberta were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat employment expenses claimed with no signed T2200 from the employer to support them.
What we did for A retiree splitting eligible pension income with a spouse, Calgary, Alberta
We pulled the full slip history from the CRA record, refiled the affected years by adjustment request, and recovered the credits that had been missed, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A retiree splitting eligible pension income with a spouse, Calgary, Alberta
Penalties stopped from the following remittance onwards, and $42,000 of overpaid instalments was refunded.
Case Study 6 · CRA review defended
$105,000 Proposed Adjustment Withdrawn In Full — Commissioned Salesperson, Victoria
Client: A commissioned salesperson · Where: Victoria, British Columbia · Engagement: 5 weeks, fixed fee
Adjustment withdrawn$105,000
File closed in5 weeks
Penalties assessedNone
The situation — A commissioned salesperson, Victoria, British Columbia
A commissioned salesperson in Victoria, British Columbia received a proposal letter opening a review of multiple rental property tax return. The CRA had identified medical expenses claimed on a calendar-year basis when a shifted window was worth far more and proposed an adjustment of $105,000, with 30 days to respond.
What we did for A commissioned salesperson, Victoria, British Columbia
We treated the response as an evidence exercise rather than an argument. We reported the disposition and filed the principal residence designation for the year of sale, closing the late-designation exposure before the CRA raised it, then indexed every supporting document against the specific line the auditor had questioned.
The result — A commissioned salesperson, Victoria, British Columbia
The proposed adjustment was withdrawn in full — all $105,000 of it. The file closed in 5 weeks with no change to the assessed amounts and no penalty.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
