Sharing rental income on property I don't own - how to handle taxes
My father owns a rental property and does not need all the income, and would like split the rental income 50/50. On his end, he is willing to pay the expenses of property tax and insurance, but he wants to split the federal tax burden appropriately. We are trying to figure out the best way to do this.
Our idea is to get two 1099's, one for each of us, by asking the property management company to pay him for the first six months of the year, and me for the second six months. That way we would each get two 1099's and file taxes accordingly. The management company sends a clean year-end report summarizing expenses by month so we would just file the expenses incurred in our given six months accordingly.
The only question I have with this plan is that I have no ownership in the property. Can I claim rental income, as above, even though I don't own the property? Will anything here constitute a flag for audits from the IRS?
