Obviously, the ideal solution would be for AirBnB & others to issue two Forms 1099-K, but that's not going to happen. Probably the best way for you to handle it in the future is to report 100% of the proceeds on your tax return and issue your co-owner a Form 1099-MISC for rental income. You would list that amount of the 1099-MISC as an expense on your return. For this year, you still list half the amount as an expense on your return and report the entire amount of income. There is also an option in the 1099K entry where you can indicate that the amount in box 1a is too high and then enter an amount for what shouldn't be there. But I would go with reporting the full amount and listing half of it as an expense.
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