I own rentals with a partner (50% each). Why do I enter 100% gross rent if I only collected 50% of gross rent and my partner took the rest? Makes a big diff in the calc.

[carl-pierce]

I enter 100% gross rent along with my partnership amount, and 50% of expenses apply. So 100% gross rent minus 50% of expenses comes up with a net then multiplies by ownership (50% in this case). But I only collected 50% of gross rent and my partner took the rest. Why would we both have to put 100% gross rent?

If I break this down, we are both charged 100% of gross rents; our respective expenses (50%), and on this net number we are made "whole" by multiplying by 50%. In reality, we never collected 100% gross rent each.

[TurboTaxKim]

When you make your entries in TurboTax in regards to a Rental Property and your Partnership, you are required by CRA to complete the Real Estate Rentals Statement (T776) showing the Gross Rent of that property. 

When completing this statement you must select "Partnership" and enter the details of your partner and percentages in order for the software to correctly calculate your share of the income and expenses. You will then see on the T1 General the Gross Rent reported on one line and your share of the Net Amount included in your total income.

Attached screenshots show what needs to be selected in the EasyStep view of TurboTax, and how it is reported on the actual CRA T1 General form.

[GregTDot]

Hi There,

This doesn't appear to be calculating correctly in 2019. And also I looked at my last year's tax return (2018) and it appears NOT have calculated correctly there too so now I'm going to have to make an adjustment - if there's an error.

Each of us, the summary indicates a net income that really should be 1/2 that.

It's not dividing the Gross Rents into two in the calculation.

[TurboTaxSusan]

Are you using TurboTax CD/Download or TurboTax Online? If you used TurboTax CD/Download did you put in your rental info using forms or EasyStep? And is you partner your spouse/common law partner or someone else?

[GregTDot]

Partner is Common-Law, but I think I figured it out. 

For Part 4, The Personal % column. It's not what % of the expenses is your "personal" expense (claiming as share of total expenses - one would think it's 50% because both the rent and expenses are split). It's the % of property that is for personal use. So if it's a property that you do not live in, you leave it as 0. If you rent out a room in your house, and pay 1000 for an expense, but room is only 10% of sq. footage, you would put 90% there similar to how you claim office space in home as work expense. 

It really should say "Personal Use%" 

Once I zeroed it out for both, the total net rent amount showed correctly on each tax return.

[RandyStoneBA]

Thanks for posting this Greg. I was struggling to figure out why the expenses weren't being fully taken into account.

I checked 2018 (my first year with my in-laws rental income) and that mistake had them pay $637.76 that they shouldn't have.

Intuit should really revise the wording on that. The entire rental income section lacks guidance (which would be nice to have considering I pay for a higher tier of the download).

Now to figure out how to amend last year's taxes for them...

[TurboTaxBrenda1]

Thank you for your feedback- We appreciate it and we will pass it on to our Production team.