We are filing together as married and own the rental property together. Our finances are shared.
If both of you own the property 50/50 - it should be split 50/50. You cannot change the percentages just to lower one spouse's tax liability (IE: report all the income on the lower income earner). If you BOTH own it and change the ownership percentage this could cause a red flag with CRA.
Here's an excerpt from the CRA Rental Guide:
Who reports the rental income or loss?
The person who owns the rental property has to report the rental income or loss. If you are a co-owner of the rental property, your share of the rental income or loss will depend on your share of ownership.
Report the rental income the same way for each year you own that rental property. In other words, you cannot change the percentage of the rental income or loss you report each year unless the percentage of your ownership in the property changes.
There is a wealth of info in the CRA Rental Guide. Here is the link: https://bit.ly/2JwR5pH
It is unclear whether Turbotax splits the rental income automatically in a co-ownership situation when filing taxes together with you spouse.
If rent is $10,000 per year, do I enter $5000 each or $10,000 each and it will figure out based on your listed your co-owner at 50%.
Same question for the expenses. If we have $2000 of expenses do I enter $1000 each or $2000 and it will figure it out based on your listed co-owner at 50%?\
Thank-you for your feedback!