Ownership

You can own a rental property by yourself or in partnership with other owners.

Co-owner

Most of the time, if you own the rental property with one or more persons, we consider you to be a co-owner. For example, if you own a rental property with your spouse or common-law partner, you are a co-owner.

In some cases, if you are a co-owner, you have to determine if a partnership exists.

Partner in a Partnership

A partnership is a relationship between two or more people carrying on a business, with or without a written agreement, to make a profit. If there is no business in common, there is no partnership.

Co-ownership of a rental property does not in itself constitute a partnership. To help you determine if you are a partner in a partnership, see the applicable laws for your province or territory. For more information, see Income Tax Folio S4-F16-C1, What is a Partnership?

Your share of the partnership income

A partnership that carries on a business in Canada, or a Canadian partnership with Canadian or foreign operations or investments, has to file a slip T5013, Statement of Partnership Income, information return for each fiscal partnership if:

• at the end of the fiscal period, the partnership has an absolute value of revenues plus an absolute value of expenses of more than $2 million, or has more than $5 million in assets; or
• at any time during the fiscal period,
  • the partnership is a tiered partnership (has another partnership as a partner or is itself a partner in another partnership);
  • the partnership has a corporation or a trust as a partner;
  • the partnership invested in flow through shares of a principal business corporation that incurred Canadian resource expenses and renounced those expenses to the partnership; or
  • the Minister of National Revenue requests one in writing.

If you are a partner in any of these types of partnerships, the partnership has to give you a Slip T5013, Statement of Partnership Income, to file with your income tax and benefit return.

If you determine that you are a partner of a partnership and you received a T5013, you do not need to complete all of Form T776, Statement of Real Estate Rentals. Instead, indicate your 9 digit Partnership Business Number as well as your percentage of the ownership of your rental property in the "Identification" area. Enter on line 18 the amount from box 110 of your T5013 slip.

If you are a partner in a partnership and you do not receive a Slip T5013, or if you are a co-owner, complete all of the areas of Form T776 that apply to you. Follow the special instructions to complete lines 8299, 9369, 9936, 9943, and 9946. If you are such a partner or co-owner, make sure you complete the "Details of other co-owners and partners" area on Form T776.

Forms and publications

• Form T5013SUM, Information Slips Summary
• Form T776, Statement of Real Estate Rentals
• Slip T5013, Statement of Partnership Income
• Income Tax Folio S4-F16-C1, What is a Partnership?
• Guide T4036, Rental Income

Date modified:

2017-01-03