Rental income - Multiple owners
If 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:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/rental-income-line-12599-gross-line-12600-net.html
ID: 20200831115617NA.xml
Webpage: KPA320-20200831115617NA.htm
