This is the one instance where I recommend reporting the rental on a partnership return. Here's why.
- The owners are not married to each other, and therefore not filing a joint return (and probably never will)
- Makes it easier for each partner/owner to report their share of income, expenses and depreciation via the K-1 issued by the partnership, on their personal 1040 tax return.
- Makes it simpler if any one partner wants to sell or otherwise dispose of their share - even to the other partner(s).
- Makes it simpler to deal with, should one of the partner's die.
-Makes it simpler do deal with an uneven distribution of rental income and/or expenses, as well as depreciation if the ownership percentages are not equal among the partners.
There's more. But that's what comes to mind in the moment.
