Hello,
I have three unique properties that I rent and manage. One property is owned by my mother ( she is an owner-occupant), one property is owned by myself ( owner-occupant) and the third one is one we own together along with an investor through our real estate management company.
The real estate management company collects all rent, manages the online listings, and writes checks for repairs. My mother does the books and I manage the rental contracts and do some of the repairs or meet with contractors.
How should we classify the income from each property and file taxes? Should I only claim the expenses and income for property #3, the 10% management fees for property #1 and #2, other rental listing costs, and legal fees etc. on the business? Then pay the net profits and send out K-1 forms to myself, my mom, and investors?
Then have my mother list property #1 expenses/income on her taxes, and property #2 expenses/income on my taxes?
Lastly, how should I handle property transfers? Say my mother moves out of her home and we transfer the deed/title into the business. Does she claim repairs/income for the first half of the year on her personal taxes then the second half is claimed under the business?
Thank you in advance for your help and clarifying my questions.
