Tax Forms Prepared by Propty.ai: FORM T776 & Form T1
Subodh M
Last Update a year ago
It is crucial to understand how you own the underlying property, as different structures have different tax treatments.
T776 forms are commonly used in real estate investing for tax purposes. Most properties are held by an LLC holding entity, even if there is only one owner of the LLC.
DAO LLCs are pass-through entities, meaning the entity itself does not pay taxes but transfers the tax liability to its owner(s).
As an active user on the Propty platform (owning at least one property token), you will receive a single T776 tax form that aggregates all your rental income, capital gains/losses, and staking income across all properties you have invested in. We will also provide summaries and breakdowns of your transactions and income per property for your records, but these are not official tax documents. You will need to file this T776 form, which is all the tax work required for your real estate holdings on the Propty platform.
If you exclusively stake USDC in liquidity pools and do not own or invest in real estate, you do not need to complete KYC. Without a KYCed account, you will be responsible for tracking and filing your own taxes on the income and gains/losses from your staking activity.
The DAO LLC must produce and file a T1 form summarizing the income and expenses for the fiscal year and the total profit/loss. The tax liability is passed to its members, who pay their pro-rata share of the entity's profits.
Your T1 form is sent to the Canada Revenue Agency (CRA) but is not sent to other countries or international organizations.