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RolandG
New Member

I own a rental property with another individual. My name alone is on the 1099-MISC royalties income. How do I correctly split this income among 2 peoples tax return?

The company who issues the 1099-MISC states they can only put 1 person's name on the form.  I only want to claim 1/2 this income since I'm also only claiming 1/2 of the deductions.  

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Accepted Solutions
PatriciaV
Expert Alumni

I own a rental property with another individual. My name alone is on the 1099-MISC royalties income. How do I correctly split this income among 2 peoples tax return?

Your best option is to issue Form 1099-MISC to the other owners for half the income reported under your name. Otherwise, the IRS will conclude that you haven't reported all your income.

Another option is to list an amount equal to half the income as a Miscellaneous Other Expense for the property and let the other owners report half the income without Form 1099-MISC. This will allow you to report net income equal to your half. If you choose this option, be sure to keep proof of the split ownership with your tax files for this year.

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PatriciaV
Expert Alumni

I own a rental property with another individual. My name alone is on the 1099-MISC royalties income. How do I correctly split this income among 2 peoples tax return?

Your best option is to issue Form 1099-MISC to the other owners for half the income reported under your name. Otherwise, the IRS will conclude that you haven't reported all your income.

Another option is to list an amount equal to half the income as a Miscellaneous Other Expense for the property and let the other owners report half the income without Form 1099-MISC. This will allow you to report net income equal to your half. If you choose this option, be sure to keep proof of the split ownership with your tax files for this year.

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