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life_apprentice
New Member

Can you report share of rental property income, received by check, from sibling who manages, as other income on 1040 Line 21, or as gift, if expense detail not received?

Sister receives a portion of rental income from an inherited home coowned with her brother.  The brother manages the property and will not provide her with the detailed information or expense receipts to accurately complete Schedule E.  She only receives a monthly check that fluctuates by year.  She does not want to pursue legal action against him.  How can she properly report this income to the IRS?
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Accepted Solutions
Hal_Al
Level 15

Can you report share of rental property income, received by check, from sibling who manages, as other income on 1040 Line 21, or as gift, if expense detail not received?

It's a gift until it isn't.

You do not have rental income to report unless you receive a schedule K-1, from your brother. See https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/What-is-a-Schedule-K-1-Tax-Form-...

If he has told you that he expects you to report the income, he, as the general partner, should be providing you form K-1. But, if you report the check amount on line 21 or schedule E, you are OK with the IRS. He's the one with legal trouble.

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Hal_Al
Level 15

Can you report share of rental property income, received by check, from sibling who manages, as other income on 1040 Line 21, or as gift, if expense detail not received?

It's a gift until it isn't.

You do not have rental income to report unless you receive a schedule K-1, from your brother. See https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/What-is-a-Schedule-K-1-Tax-Form-...

If he has told you that he expects you to report the income, he, as the general partner, should be providing you form K-1. But, if you report the check amount on line 21 or schedule E, you are OK with the IRS. He's the one with legal trouble.

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