We did not have an LLC or any official partnership.
For rental property, you're not required to have any official partnership. But it would be a good idea to establish a partnership (not an LLC) not just for accounting/tax purposes, but for other purposes outside of taxes since the two owners are not married to each other and do not file a tax return.
Each of the two owners are perfectly fine reporting their share of rental income/expenses/depreciation on SCH E as a part of their own personal 1040 tax return.
We each have our own expenses.
If you're not splitting things down the middle, you may find a partnership simpler, as the 1065 partnership return (which is due March 15th each year) can be set up to allow for differences in ownership percentages and expense/income percentages. Then, each owner gets issued a K-1 at tax time which each owner reports on their own personal 1040 tax return. Makes life easier also, if you live in a state that taxes personal income, and/or the properties are in a state that tax personal income.
I would highly advise you seek the advise of a tax professional in your local area so that you can make "educated" decisions. Don't rely on these public user-to-user forums to educate you, as we all have our own opinions, and I'm no exceptions. We all know what opinions are like to! Just because a forum user has a "CPA" tag or something similar after there name, doesn't mean they understand your specific and explicit situation.
