Rental income - Multiple ownersIf the rental property is owned by a partnership, one of the partners in the company could be either your spouse or other people.
To report a rental income, follow the steps below:
1- On the "Left side menu on the Interview tab", select the item "Rental income" from the page on your right, choose "T776 - Rental income property".
2- Return to the "Left side menu on the Interview tab" and choose the item "Partners".
3- In the screen on your right, you have two (2) choices, "Spouse co-owner of this rental property" or "Other partner or co-owner of this rental property".
4- If your spouse is co-owner, you have two options in the drop-down menu: "Generate rental income statement for spouse" or "Do not generate rental income statement for spouse".
5- If you choose the first option, it is not necessary to enter information about the building in your spouse's file. Nevertheless, the program will generate the federal Statement of Real Estate Rentals, and the Quebec equivalent form, in the case of Quebec residents.
6- However, if you have different expenses, from your spouse, you should select the second option and the program will not generate the Statement of Real Estate Rentals automatically, in which case you must now enter the complete information relating to the rental property in your spouse's file.
7- If none of the other partners is your spouse, you must choose "Other partner or co-owner of this rental property" and enter the name, the address, SIN as well as the share of ownership. The program will prorate the income and expenses. The partner must also enter into his or her own file all the information relating to the property.
8- Please note that in the page "T776 - Rental property identification", the percentage that you must enter in the fields for "Percentage interest in the partnership" and "Your share (%) of ownership if other than 100%" should be identical.
9- Usually, the owner of a rental residence does not claim any depreciation on his property, to do so under the sub-heading "CCA" of the building go to the line "Limit to the CCA or the CECA of this class" and enter $0,00 or the amount you wish to claim.
10- If you provide movable property, such as refrigerator or other, you can also claim CCA on these items because it does not increase the value of your building.
We suggest that you must keep all required records and supporting documents for your rental property for a period of six years.
For more information regarding rental income, please visit the following CRA link:
ID: 20200831115617NA.xml
Webpage: KPA320-20200831115617NA.htm