T776 - Co-ownership percentage

[Bovie]

I am trying to have line 2 on the T776 (page 2) show the co-owners share (e.g., 50%) of net rental income for a husband and wife. It is a husband and wife and they are co-owners, not partners. However, the only way TurboTax will show the proportional amount in line 2 is by entering a percentage in Part 1 under "Your percentage of the partnership". Strangely, line 2 does NOT seem to be impacted by the "Percentage of ownership" in Part 2.

Do I need to fill in the partnership percentage in Part 1 as a co-owner to have line 2 show the proportional amount, or is there another method that co-owners (as opposed to partners) use to show their proportional share of net income on line 2.

Thanks!

[TurboTaxAniqua]

When you own rental property with your spouse, it'll likely be a co-ownership or, under certain conditions, a partnership. If you're not sure, the CRA suggests checking the partnership laws for your province or territory. You can also look up Income Tax Folio S4-F16-C1, What is a Partnership?

Once you decide which situation applies to you, the steps for entering spousal co-owners' rental property income in TurboTax will vary depending on the software edition (and view) you're using.

How do I enter rental property income if my spouse and I are co-owners?

If you are using the Desktop/Download version and your returns are "coupled" (prepared together), make sure to check the box in the co-owner section labelled "Transfer to spouse." This ensures the other 50% flows automatically to your spouse’s return, so you don't have to enter the data twice!

Hope this helps! 

Thank you for choosing TurboTax.

[Bovie]

I have a few points to clarify as I find your response doesn't fully address the questions that I asked. First, I am using the desktop version, NOT the online version of TurboTax. Second, the husband's and wife's are being prepared in the same file (.tt25) Third, factually, they are CO-OWNERS at 50% each, NOT a partnership. Fourth, I am using the forms method, not EasyStep.

Based on the above:

1) I don't see any box labelled "Transfer to Spouse" on the T776 form in TurboTax. Where is it on the T776? Or is this in only in EasyStep , or not on the desktop version at all?

2) If the "Transfer to Spouse" box is not on the desktop version, and if I have selected "co-owners" on the form AND fully entered the information in PART 2 of the form ("Details of Co-owners and Partners") including "Percentage of ownership" at 50%, Line 2 on T776 is not changing to the proportional amount for each taxpayer. Should it?

3) Or, must I also enter 50% in PART 1 under "Your percentage of the partnership"? While this does change Line 2 to the correct proportional amount, it seems incorrect to enter 50% here as it is NOT a partnership (it is co-ownership). Please advise.

Thank you.