Get your taxes done using TurboTax

The rental income reported on schedule E is unearned income, so it is not subject to social security and Medicare tax like your non-rental business. So, there is no obvious reason to split that income between the two of you. If you wanted to do that for some reason, you would need to enter two separate rental properties in TurboTax and split all items of income and expenses associated with the rentals between the two properties.

When you enter your sole proprietorship income, you add a new business for your spouses share of the business and enter her share of income and expenses on her business and the rest on yours. You'll see an option to add a new business when you are done entering things for the current business on the screen that says Here's the business info we have so far:

You'll see a similar option to enter a new rental property when you are done entering rental income and expenses for a rental property in TurboTax.