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evi042
Level 1

Question Regarding Rental Income for 2 Owners

My brother and I are both 50% owners of a condo and are deciding to rent it out (we both do not live at the condo). We decided that I will take care of the rental, income, and associated taxes.

 

I was wondering, is it possible for me to report and pay for all of the taxes associated with the condo? Or would it have to be split 50/50 with my brother?

 

Thank you!

 

3 Replies
Carl
Level 15

Question Regarding Rental Income for 2 Owners

Generally, the IRS doesn't care so long as all income/expenses are reported and all taxes are paid. However, it depends on the laws of the state you are in, and they can differ quite significantly from state to state. You should seek legal advise from a licensed professional in your state.

Note that if only one of you is reporting rental income/expenses, this will create reporting issues when you go to sell the property, since only one of you will have taken depreciation on the property. That's one of many reasons why professional help is highly recommended.

Critter-3
Level 15

Question Regarding Rental Income for 2 Owners

You may be required to set up a partnership depending on the state requirements  and  even if not required you may wish to do so anyway ... seek local professional guidance to get this set up correctly as fixing it later can be costly.

evi042
Level 1

Question Regarding Rental Income for 2 Owners

Thank you for the insight and replies!  I'll definitely contact a licensed professional!

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