You should consider coming to an agreement with your spouse
on how to handle this. If your rental
property is jointly owned, an equal split would be reasonable. One spouse could prepare the Schedule E with
the 100% data. This spouse could include
an expense in the amount of one-half of the profit, to correctly state his or
her share. The expense would be
captioned,” One-half Schedule E profit reported to co-owner.” This spouse would need to issue a 1099-MISC
to report the half profit to the other co-owner and the IRS. This would be reported in Box 1, Rents.
With respect to your investment account, an equal split may
not be appropriate if the assets are not jointly owned or if one spouse exercises
more control than the other. You would
need an agreement with your spouse on how to do this.
