Do I have to split the rental income on our basement suite 50:50 with my husband? Or can we change the percentage we each claim?

[GD202]

Thank you for your question!

As per CRA:

Your share of the partnership income

A partnership that carries on a business in Canada, or a Canadian partnership with Canadian or foreign operations or investments, has to file a slip T5013, Partnership Information Return, for each fiscal partnership if either of the following occur:

• at the end of the fiscal period, the partnership has an absolute value of revenues plus an absolute value of expenses of more than $2 million, or has more than $5 million in assets
• at any time during the fiscal period
  • the partnership is a tiered partnership (has another partnership as a partner or is itself a partner in another partnership)
  • the partnership has a corporation or a trust as a partner
  • the partnership invested in flow through shares of a principal business corporation that incurred Canadian resource expenses and renounced those expenses to the partnership
  • the Minister of National Revenue requests one in writing

If you are a partner in any of these types of partnerships, the partnership has to give you a slip T5013, to file with your income tax and benefit return. For more information on this return, go to Sole proprietorships and partnerships or see the T4068, Guide for the Partnership Information Return (T5013 Forms). 

If you determine that you are a partner of a partnership and you received a T5013, fill in only the following fields on Form T776:

• enter your 9-digit Partnership Business Number
• enter you rental property ownership percentage in the "Percentage of ownership" box
• enter the amount from box 110 (or 107 if it is a limited partnership) of your T5013 slip at amount 10

If you are a partner in a partnership and you do not receive a T5013 slip, or if you are a co-owner, fill in all of the areas of Form T776 that apply to you. Follow the special instructions to complete lines 8299, 9369, 9936, 9943, and 9946. If you are such a partner or co-owner, make sure you complete the "Details of other co-owners and partners" area on Form T776.

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