Reporting a co-owned rental

Each owner reports their own share

Each co-owner reports their share of rental income on their personal tax return. Their T776 forms show the same totals for the property, then apply each person’s ownership percentage. The form also asks whether the arrangement is co-ownership or a partnership, because the reporting rules differ.

How the form splits income

Parts 3 and 4 record the rental income on line 8299, every expense category, and the personal-use portion on line 9949 for 100% of the property. Only line 9369, the net income or loss before adjustments, is multiplied by each owner’s percentage to calculate their share.

The personal-use portion is removed before the ownership split. Record each receipt at its full amount.

Co-ownership or partnership?

Owning a property together and sharing the rent is ordinarily co-ownership. A partnership means carrying on a business together for profit, and can involve services beyond basic rental activity. Partnerships follow different income-allocation and reporting rules, including how they handle capital cost allowance (CCA), a deduction spread over years. This guide and calculator cover co-ownership.

What sets the percentage

The percentage reflects actual ownership, supported by records such as the title and each person’s contribution to the purchase. Income cannot simply be assigned to whichever owner pays less tax. Attribution rules can affect who reports income when money has been transferred between family members.

If the percentages do not total 100%, the calculator shows a warning and continues calculating. Check that every owner is included and that each share is entered as a percentage, such as 50 for 50%.

Each owner chooses their CCA claim

Capital cost allowance is applied after the ownership split, on line 9936. Each owner decides whether to claim any amount, based on their own share and their net income across all their rental properties. One owner can claim zero while another claims an amount up to their allowed maximum.