CRA allows you to report a loss on your rental property or business to be deducted against other sources of income. In prior years, CRA administratively used the reasonable expectation of profit (REOP) test on a case by case basis and at times disallowed rental losses where they felt there was no reasonable expectation of profit from the venture. In a fairly recent Supreme Court case, this test was stuck down when there is no personal element attached to the venture. Where there are personal elements, CRA may look to the expectation of profit.