Does rental income count toward child support calculations in Ontario?

Yes, rental income is included in a payor's income for child support purposes under the Child Support Guidelines. All sources of annual income that appear on the federal income tax return form part of the baseline income used for support, and rental income is reported on a tax return in the year it is received.

However, rental income as reported on a tax return reflects net rental income after expenses such as mortgage interest, property taxes, maintenance, and depreciation. Under Schedule III of the Guidelines, the court may adjust this figure. In particular, depreciation claimed on a rental property may be added back to income because it reduces taxable income without representing an actual cash outflow — the payor still received the rent but claimed a non-cash deduction.

Courts may also look at whether a payor is managing rental expenses strategically to reduce apparent income. If expenses seem inflated or if income is flowing through a related corporation, the court may look beyond the tax return to the actual cash flow the property generates. A recipient who suspects rental income is being minimized on paper should request production of lease agreements, bank records showing rent deposits, and mortgage statements. A lawyer or forensic accountant can help build an accurate picture of rental income for support purposes.