How do I report rental income and expenses for a spouse who is 50/50 co-owner with me? Do I enter the full amount of expenses/income on both tax forms since it does state we are a 50/50 owner?

Wife and I are a 50/50 co-owner of a rental. Do I enter the TOTAL amount for the income and expenses on BOTH of our returns? For example, the rental made $15,000 last year and expenses totaled $3,000. Do I enter $15,000 income & $3,000 expenses for me AND $15,000 income & $3,000 expenses for her provided I've stated we are 50/50 co-owners?

660

Level 5

Apr 10, 2021 4:54:19 PM

Thank you for your question. As per CRA, Yes, you and your co-owner (your spouse) need to fill the full amounts of both the rental income and expenses separately on each return. For that, you're required to fill the form T776: Statement of Real Estate Rentals.

For example: If you've earned $15,000 as rental income and $3,000 are your expenses, fill the form T776 in your return and your spouse's as well and fill the full amounts on both; however, make sure to fill the percentage of ownership and the details of the co-owner as mandatory fields.

Please assure to 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.

For further help, follow the links:

CRA: Ownership.

TurboTax Blog: Owning a rental property with a spouse.

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How do I report rental income and expenses for a spouse who is 50/50 co-owner with me? Do I enter the full amount of expenses/income on both tax forms since it does state we are a 50/50 owner?