Related individuals hold a rental property in co-tenancy. Is the rental income, or any taxable capital gains from a disposition, split income? CRA responded:
Generally split income … include[s] amounts that are included in a specified individual’s income in respect of a corporation, partnership or a trust … [and] does not include amounts that are included in the income of a specified individual as a result of the direct ownership of real property.
Therefore, assuming …[they] are individuals (other than trusts), and that the rental activities do not amount to a partnership, the rental income earned and the taxable capital gain realized on the real property will not be subject to the tax on split income.