Hi, I sold a rental property that I owned 50/50 with my spouse. 50% of the capital gain is being reported on both our schedule 3 and that 50% is being reported as income on line 12700. I was expecting only 25% to be reported on line 12700.
For example, capital gain is $100, split $50/$50 with my spouse and taxable at 50%, therefore only $25 should be added to line 12700 to both our returns.
How do I fix this?
Thanks