We sold rental property in 2016, I checked "I sold rental properties, lands or buildings". Do I need to check Equipment and building disposition too?

When disposing of Rental Property (Investment) there are a number of steps to correctly report the transaction to Canada Revenue.

You will need to access the rental schedule under the "Income" tab > "Rental Property" providing details of the address for the property and ownership type. Also include the date that the property was sold.

Then continue to the "Rental Profile" you will complete the sections as in previous years for income and expenses. Included in the year of sale will be information for "Bought/Sold Equipment, property, buildings or land", (this will only be relevant if you have claimed or set up CCA amounts in prior years and have remaining UCC balances to clear. If you have not claimed CCA in prior years or have opening UCC then this section is not required. (This is very important and requires review of prior years tax returns.)

The second area of the tax return that requires reporting of this disposition is for Capital Gains/Losses. Find this screen under "Income" > "Investments" > "Capital Gains and...", place a check mark in the first box "Sold stocks, bonds, real estate,..." and continue.

In the Capital Gains screen you will indicate the type of investment sold as "Real Estate/depreciable property" and then input the required information for your transaction.

What amount do I enter on T776 for Equipment and Property Dispositions in the Proceeds box?  My understanding is that it is the lesser of the actual proceeds of the sale Or the ACB?  Does the ACB need to correspond to the original Equipment and Property Addition amount when we filed income tax upon purchase of the property?

Yes if you have UCC for a class 8 asset (Equipment/Appliances) then enter the lesser of original ACB or its current market value determined at the time of purchase. Do this only if the value of the Class 8 item is stipulated in the purchase agreement. If no value was discussed then it is likely the value (depending on age) is now zero and proceeds would be recorded as $1.00. Most Class 8 items if older will have no (or minimal) value on sale.
The bigger issue would be with any Class 1 asset and prior CCA taken. This may result in Recapture and income reported on the T776 from the sale.

Ok, I also have a Class 1 asset, so I assume I use the lesser of the 1) original ACB (from my first income tax reporting for CCA) or 2) actual proceeds of the building sale?  Note the sale agreement does document the sale price for each of a) Furniture (Class 😎 and b) Condo (Class 1).

Yes you are on the right track. Use the original ACB set up for the Class 1 asset if this is less then the selling price. And again the price included in the sale for Class 8 if that was less then the original ACB.

The condo is owned 50% by me and 50% by my husband. I am completing a spousal return. When entering the 'proceeds, ACB and outlays and expenses' in the capital gains (income section) from the sale of the condo do I enter 1/2 in my section and half in my spouses?

If you are preparing the tax returns linked together in Turbo tax the Capital Gains screen offers the option of splitting the net claim with your spouse, box below the "Type" drop down menu. Other wise you will need to manually prorate the information between the tax returns.
It should be noted that on the T776 the UCC, Proceeds, will need to be reported individually on each co-owners rental schedule.

I am not sure I follow your answer.  I am preparing a link tax return.  I am using Turbo Tax Premier. I do not see the "Type" drop down menu.  I assume you mean prorate as in split the total (in this case 50%) and enter 50% on mine and 50% on my husbands?.  For UCC, I assume that I include the total on mine - I did that originally and Turbo Tax seemed to auto fill my spouses with the same total.

Under the "Income" tab > Investments" > "Capital Gains.." and check off boxes for each of you "Sold stocks, bonds, real estate..." and then continue. You should then arrive at the "Capital Gains" screen with first option is 'Type' and select from the drop down menu "Real Estate/depreciable/other". The next open box below this will be "percentage reported by spouse" This is for the Capital Gains calculation with respect to any investment profit made over the original purchase price.
The proceeds in the T776 deals only with recapture or terminal loss based on the difference between the original ACB and existing UCC balances.

Sorry but when I arrive at the Capital Gains Screen, there is no option called 'type'.  I checked off that we both had property to sell.  The software then takes me to a Capital Gains form to fill out for each of us.  EAch form asks for Proceeds, ACB and Total Outlays and Expenses.  I filled out 50% of the Proceed, ACB and Total Outlays and Expenses on each of our Capital Gains form.  This is an example only:  Total Proceeds = $100.00 total from sale.  Total Proceeds: me = $50.00; Total Proceeds: My husband $50.00.  I assume this is correct? Thank you

see below

I do not have that screen available on my version of Turbo Tax.  Which version of the software does this screen come with?

The screen shot was captured in the Online - Premier version of Turbo Tax from a PC.

If the split option was not available (see snap shot) and manually entered the information between both returns you will still achieve the correct result on line 129 for Net Capital Gains.

When I go into rental property, it only asks if I had any income (which I did) it doesn't give any other choices.

How do I get into the proper part for sale of rental property?

Thank you!!! It took me a long time to find this answer, and it totally answers what I was searcing for.