Can I claim a different percentage for deductions than rental income on property that has two owners?

[bokslee]

Can one owner claim 100% of the deductions on a rental property (property tax, condo fee etc.) while the other owner reports 100% of the rental income? Or even claim 80% deductions and 20% income while the other reports 20% deductions and 80% income?

[TomD8 · Accepted solution]

If an owner received rental income, and then claimed on his tax return that he had not,  would that not constitute a fraudulent tax return?  Or if he claimed rental expenses that he had not incurred?

Your tax returns should reflect the actuality of each owner's share of the income and expenses.

[bokslee]

not trying to be fraudulent. i've read that you MUST report 50/50 if co-owned even i reality that percentage was 80/20 or 100% i'm just trying to figure out if i MUST report 50/50 or can report actual incurred cost/income.

[TomD8]

As far as I know, the only example of a required 50/50 split would be a married couple filing separate returns in a community property state.  The general rules are that you must report all your income, and you can't claim a deduction you didn't pay.  You should also see this:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2933875-how-do-i-enter-rental-jointly-owned-by-myself-and-non-spus...>

[SweetieJean]

My state (NJ) requires a 50/50 split, regardless of who pays, on the State return.

[bokslee]

great! our property is actually in NJ so it sounds like I can report actual expenses/income on my federal return but need to report 50/50 on my NJ state return?

[maglib]

no  I know of no rule in NJ requiring this.  I live in NJ and we have properties and we all claim our actual cash as you are a cash basis taxpayer in both state and federal.