Thanks. Let me be sure I understand. I'm not planning to give her my portion of the house. I will continue to be on the title. If the property gets sold, we will divide the proceeds. It is the income generating agreement that has changed. She has been managing the property full-time for the last couple of years with little involvement from me. It is only fair that she get to keep the income and pay the expenses as the day-to-day manager (as you said going from 50/50 to 100/0). She will report the full income on her taxes, so to your point the IRS will have all income reported. I was planning to just stop including a schedule E for that property with my taxes.
Given this further clarification from me, am I fine just deleting the schedule E from my taxes and allowing her to report 100% on her taxes?
