Filling T776.
I and my spouse are co-owners of a rental property (50%/50%).
We have a Gross rents X$, I enter it on each of our forms.
We have Y$ interest, which is also 50% split.
I thought that each of us should report income equal to: (X-Y)/2.
But I see that each of us is calculated an income (X - Y/2) / 2.
Why?
Thank you for your question.
When completing your T776, you will enter gross rent(line 8299) and gross expenses, which will give you net rental income(line 9369). This net rental income is then divided based on % of ownership. When entering expenses it is important to note that the personal portion option is only to be used when you have a rental that is partially used for personal reasons, such as renting out a suite in your own home. The personal portion would be the portion of the home you live in and use for personal reasons.
Thank you for your question.
When completing your T776, you will enter gross rent(line 8299) and gross expenses, which will give you net rental income(line 9369). This net rental income is then divided based on % of ownership. When entering expenses it is important to note that the personal portion option is only to be used when you have a rental that is partially used for personal reasons, such as renting out a suite in your own home. The personal portion would be the portion of the home you live in and use for personal reasons.