Announcement

Collapse
No announcement yet.

Rental income of property previously owned jointly

Collapse
This topic is closed.
X
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Rental income of property previously owned jointly

    We separated in November last year after an 8-year marriage. Over last year, we had a rental property (jointly owned) which earned rental income.

    The separation agreement specifies that he gets the rental property while I get the matrimonial home. The ownership change on properties had been done and title on mortgage were also modified. All the procedures are done before December 31, 2010.

    The lease agreement with the tenant was signed by me only, for the sake of convenience earlier in 2010. The rental cheques were made payable to me only, however, the rental income had been deposited into joint bank account until the separation. Now that my ex is the sole owner of the rental property, the tenant has been advised of the change.

    How do I need report the rental income in my tax filing? How do I deal with this?

    Thanks.

  • #2
    You can indicate a % of ownership for rental properties that are joint owned. I'm guessing you were putting 50-50 on your taxes before? So ideally you would figure out the %, based on when in the 2010 the ownership transfer was done.

    e.g. if the transfer was done 3/4 into the year (i.e. Oct 1 2010), then you have 50% of the first 3/4, and 0% of the last 1/4, which works out to 37.5% for 2010 overall.

    In order not to raise any flags with CRA, ensure that you agree on the %'s so that yours + your ex's sum to 100%.
    Last edited by dinkyface; 03-21-2011, 02:59 PM.

    Comment

    Our Divorce Forums
    Forums dedicated to helping people all across Canada get through the separation and divorce process, with discussions about legal issues, parenting issues, financial issues and more.
    Working...
    X