Ownership

If you own a rental property by yourself you are an 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. 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 as an investment does not in itself constitute a partnership. To help you determine if you are in a partnership, see the partnership law for your province or territory. For more information, see Interpretation Bulletin IT-90, What is a Partnership?

For 2011 and later taxation years, a partnership that carries on a business in Canada, or a Canadian partnership with Canadian or foreign operations or investments, has to file a T5013 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, or a Slip T5013A, Statement of Partnership Income for Tax Shelters and Renounced Resource Expenses, 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 or T5013A slip, you do not need to complete all of Form T776, Statement of Real Estate Rentals. 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 e the amount from box 26 (box 23 if a limited partnership) of your T5013 or T5013A slip.

If you are a partner in a partnership and you do not receive a Slip T5013 or a Slip T5013A, 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 page 1 of Form T776.

Forms and publications

• Form T5013SUM, Information Return of Partnership Income
• Form T776, Statement of Real Estate Rentals
• Slip T5013, Statement of Partnership Income
• Slip T5013A, Statement of Partnership Income for Tax Shelters and Renounced Resource Expenses
• Interpretation Bulletin IT-90, What is a Partnership?

Related topics

• Line 8299 - Income
• Line 9369 - Net income (loss) before adjustments
• Line 9936 - Capital cost allowance
• Line 9943 - Other expenses of the partner
• Line 9946 - Your net income (loss)