Hi - I have an unusual situation, or maybe not so unusual!. We purchased 3 rental properties in July last year with another couple, 50% ownership each couple, and then entered into a joint venture agreement in October with an additional 2 couples, giving them each a 25% share of future profits. Now there are 4 co-owner couples, owning 25% each. There was no gain on the sale within the joint venture agreement, we used the initial cost of the properties.
The agreement was from July to Sep the rental profit is ours and the new joint venture partners share in the profit from Oct on. Now we are filling in the tax return and wonder how to show the first few months at 50% ownership per couple and the last few months 25% ownership per couple.
Should we fill out a T776 for each of the periods, so that would be one for each house for Jul - Sep and another one for Oct to Dec. I can`t imagine how CRA will interpret that but I can`t see any other way around it!
IT`s easy for the new joint venture couples as they only have to worry about Oct - Dec 25% each. Just concerend about the initial 2 couples.
thanks in advance.
The agreement was from July to Sep the rental profit is ours and the new joint venture partners share in the profit from Oct on. Now we are filling in the tax return and wonder how to show the first few months at 50% ownership per couple and the last few months 25% ownership per couple.
Should we fill out a T776 for each of the periods, so that would be one for each house for Jul - Sep and another one for Oct to Dec. I can`t imagine how CRA will interpret that but I can`t see any other way around it!
IT`s easy for the new joint venture couples as they only have to worry about Oct - Dec 25% each. Just concerend about the initial 2 couples.
thanks in advance.