Which documents to keep if Revenu Québec audits your rental property (duplex, triplex, multiplex)?

No one likes receiving an audit letter from Revenu Québec or the CRA. But owners of duplexes, triplexes, and multiplexes are audited regularly, especially when rental expenses are high or major work has been claimed.

The good news: with basic organization, an audit can be a simple exchange of documents instead of a source of stress.

1. Core file for each building

Create a physical or digital folder for each building containing:

• The purchase deed and the notary's statement of adjustments.
• Recent municipal assessments.
• Signed leases (current and at least the past 6 years).
• Rent increase notices and important tenant communications.

This file is the foundation when questions arise about the building's value, number of units, and rents.

2. Bank statements and proof of rent collected

Revenu Québec may want to verify that:

• Rents reported on your return match bank deposits.
• Ancillary income (parking, storage, laundry) is included.

Keep:

• Full bank statements for the dedicated rental account.
• A rent roll by unit with dates, amounts, and payment method.
• Proof of deposits (screenshots, deposit slips, etc.).

To set up this system, see the article Tracking rental property income and expenses in Quebec for duplex, triplex, and plex owners.

3. Invoices for rental expenses

For each expense claimed on T776/TP-128-V, keep:

• The detailed invoice (supplier, date, description of work or service).
• Proof of payment (debit, transfer, cheque, credit card).

Classify them by category:

• Municipal/school taxes.
• Building insurance.
• Utilities.
• Repairs and maintenance.
• Advertising and management.
• Professional fees.
• Interest on loans tied to the property.

4. Major projects and capital expenses

Large projects attract extra attention. For each major project (roof, windows, kitchens, bathrooms, heat pumps):

• Keep the quote, final invoice, and payment proofs.
• Add before/after photos to show the nature of the work.
• Indicate whether you treated the cost as current expense or capitalizable, in line with the article Current vs capital expenses for a rental property in Quebec.

5. Loans and interest

To deduct interest properly:

• Keep mortgage and line-of-credit agreements.
• Keep annual statements showing the interest portion.

In an audit, Revenu Québec may want to see that borrowed funds were used for the property (acquisition, renovations, refinancing linked to rental activity).

6. Mixed-use buildings and owner-occupied units

If you live in one unit of the building or have commercial + residential space:

• Document your allocation method for shared costs (taxes, insurance, roof, boiler).
• Keep notes on square footage or other bases used to split costs between personal, rental, and commercial portions.

This makes it easier to justify your numbers in case of questions.

Need help with your situation?

If you own a duplex, triplex, or multiplex in Quebec and want to prepare now for a potential Revenu Québec audit, TaxCove can help you structure your files, rent rolls, and expense proof. To get started, visit the secure tax intake form page.

Important notice: This article provides general information only and does not replace personalized tax or legal advice. Audit practices and documentation requirements can change. Always confirm requirements directly with Revenu Québec, the CRA, or a qualified professional for your specific situation.