Each spouse claims what they actually received in rents and the actual expenses each paid on their separate returns. Keep your bank statements or other proof of income and expense. See community property rules next if they apply.
Note: If you live in a community property state the rules will be different.
Nine states have community property laws. Married couples in these states typically need Form 8958 if they file separate rather than joint tax returns:
- Arizona
- California
- Idaho
- Louisiana
- Nevada
- New Mexico
- Texas
- Washington
- Wisconsin
You must follow the state's rules when reporting community property income. Generally use your state's laws to determine whether a particular source of income is separate or community property because the IRS generally defers to each community property state's rules. The following links will help you decide how to allocate the income in TurboTax. You may need to visit your state's website for specific income adjustments but you should start in the IRS publication to use a nice chart of Community Property and Separate Property.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
