Rental income - Separation in the year

During the tax year, you separated from your spouse and you were renting the part of the building that you occupied.

As a result, you must complete two (2) rental income sections (forms) for this property, the first rental income as owner occupying part of the building for the period you lived in a dwelling, and a second rental income as a 100% rental property.

1. On the "Left-side menu on the Interview tab", select the heading "Rental property income".

2. Under the subheading "Identification" fill out the page "T776 - Rental property identification" Indicating the date "Beginning of fiscal period of your rental property" and by indicating the date on which you left your place of residence in that building "Fiscal year-end of your rental property".

3. Do not forget to indicate in the line, "Percentage (%) of personal use of your rental property".

4. On the page "Rental property income and expenses", on the line, "Tick if this is the final year of operations", check the box even if it is not true.

5. Enter the income and expenses for this period only.

6. You need to create a second T776, go back to the "Left-side menu on the Interview tab" and select the "Rental property income" again.

7. On the page "T776 - Rental property identification" on the line "Beginning of fiscal period of your rental property", indicate the date when the building was purely a rental property.

8. Always on this page, in the line "Percentage (%) of personal use of your rental property" leave the line blank or enter 0%.

9. On the page "Rental property income and expenses", do not forget to tick the box "Tick if this is the final year of operations" and enter the income and expenses for this period only.

The program will generate two (2) federal T776 forms and, for residents of Quebec, two TP-128 forms.

In addition, gross and net income will be shown on lines 12599 and 12600 of the federal return respectively and, for residents of Quebec, gross and net income on lines 168 and 136.

ID: 20200831140157NA.xml

Webpage: KPA320-20200831140157NA.htm

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