When you own rental property with your spouse, it'll likely be a co-ownership or, under certain conditions, a partnership. If you're not sure, the CRA suggests checking the partnership laws for your province or territory. You can also look up Income Tax Folio S4-F16-C1, What is a Partnership?

Once you decide which situation applies to you, the steps for entering spousal co-owners' rental property income in TurboTax will vary depending on the software edition (and view) you're using.

How do I enter rental property income if my spouse and I are co-owners?

If you are using the Desktop/Download version and your returns are "coupled" (prepared together), make sure to check the box in the co-owner section labelled "Transfer to spouse." This ensures the other 50% flows automatically to your spouse’s return, so you don't have to enter the data twice!

Hope this helps! 

Thank you for choosing TurboTax.

I have a few points to clarify as I find your response doesn't fully address the questions that I asked. First, I am using the desktop version, NOT the online version of TurboTax. Second, the husband's and wife's are being prepared in the same file (.tt25) Third, factually, they are CO-OWNERS at 50% each, NOT a partnership. Fourth, I am using the forms method, not EasyStep.

Based on the above:

1) I don't see any box labelled "Transfer to Spouse" on the T776 form in TurboTax. Where is it on the T776? Or is this in only in EasyStep , or not on the desktop version at all?

2) If the "Transfer to Spouse" box is not on the desktop version, and if I have selected "co-owners" on the form AND fully entered the information in PART 2 of the form ("Details of Co-owners and Partners") including "Percentage of ownership" at 50%, Line 2 on T776 is not changing to the proportional amount for each taxpayer. Should it?

3) Or, must I also enter 50% in PART 1 under "Your percentage of the partnership"? While this does change Line 2 to the correct proportional amount, it seems incorrect to enter 50% here as it is NOT a partnership (it is co-ownership). Please advise.

Thank you.

@Bovie In Forms Mode, the words "Your percentage of the partnership" comes from the actual T776 form, but it maps to the same number as the EasyStep line which does mention ownership. So, you do need to put your share of the ownership there.

And no, TurboTax Desktop doesn't have the option to automatically transfer the T776 to your spouse. The fastest & easiest way to enter rental income for both spouse in TurboTax Desktop is to prepare the T776 for the first spouse. then go into Forms mode and then select Edit>Forms> Copy/Transfer Form, then Copy to make a copy of the form on the other spouse's return.