Claiming Rental Income on Co-Owned Property

[StaBen85]

Hi there - I am filing income taxes for a rental property for my very first time this year. If my husband and I co-own the property do we both claim the same income and expense amount totals on each of our returns? Or do I divide the amounts by 50% and enter them that way? (For example, annual rent collected was $10k, so do I report $10k on each of our returns or $5k on mine and $5k on his? Same goes for the expenses. We are filing taxes jointly). Thank you!

[Mtl39]

Hi

When you're completing the information part of the rental property, it asks you if you are a co-owner, and if yes, your spouse; also asks you to indicate the % split between the co-owners.  Indicate all that and the software will automatically take 50% of all income and expenses as you add each of those into the spreadsheet.

[StaBen85]

Thank you! So I enter the full amounts for both of us and the software will know to only use 50%?

[LiseL]

Yes, the software will split it by the percentage you enter, in your case, you would enter 50% under each person.

 

[StaBen85]

Thanks - so just to clarify, if the amount is $10k, do I enter 5k under each person or the full 10k amount under each person? One answers says the system will automatically calculate 50% and another one says to enter 50% myself. 

[Connor]

My understanding is that under the Partners tab(section) you select Ownership by Spouse and then select "generate rental income statement for spouse".  It states at the top of this section you don't have to enter the same rental information in your spouses interview.

[Geo123]

Hello Connor,

Correct. To generate the T776 in your Spouses file you only enter the amounts once, the system will calculate if you select Partner.
Go to  Interview under the T776
>> Business partners
  >> Spouse co-owner of this rental property “+”  < - - - SELECT HERE

Other partner or co-owner of this rental property:-

>> Ownership by spouse
Percentage share owned by your spouse   [Generate rental income statement for spouse]  [50%] < - - ENTER % eg. 50%
 

[Scott B]

If your co-owner (50/50) is a friend and not your spouse (you file individual tax returns) does Ufile automatically calculate 50% of income and expenses or do you have to manually enter the 50% values. 

 

Assume a $20,000 yearly income. Do both co-owners enter $20,000 income and allow Ufile to apply 50% or do both co-owners enter $10,000.

I know this appears to be a duplicate of an already answered question, but I'm specifically asking for co-owners who are NOT spouses

[Prasheen S]

Bump.

@Scott B Did you get an answer to your question? I have the same question.

[Geo123]

Hello Scott B,

Yes, Ufile automatically calculate 50%.