Rental property ownership.

[llcantin]

We recieve income from a rental property that we do not own.  How do we proceed on the rental property section quetion regarding rental property ownership.

[AnnetteB · Accepted solution]

In general, you will go through the Rental Income and Expenses section as if you did own the property. 

The program may not proceed without you answering that you are the owner.  So, when you come to the question about whether you, your spouse, or both of you own the property think of it as asking which of you is reporting the income and expenses.  This will define the designation on the Schedule E as having either one name or both names listed. 

Then, continue through the rest of the section entering income and expenses except those that would pertain to ownership of the property (no mortgage interest, no property taxes).  Do not depreciate the property itself since you do not own it.  Choose “none of the above” for the method of acquisition if asked.