topic My wife does not work, but is on the title of the rental house. Does she have to report half the rental income or can I just claim it all? in Investors & landlords

My wife does not work, but is on the title of the rental house. Does she have to report half the rental income or can I just claim it all?

litou50 — Sun, 28 Mar 2021 10:03:54 GMT

The mortage is in my name only, but the title is in both of our name. Can I claim all the rental income or does my wife have to claim half of the rental income even though she does not work.

Re: My wife does not work, but is on the title of the rental house. Does she have to report half ...

DianeW777 — Sun, 28 Mar 2021 13:37:39 GMT

It depends. You could decide to choose who will claim the rental property on their return or a joint return. If the rental property is in both names and you file separately you can split the rental income and all expenses in half if a joint account is used to receive rents and pay expenses.

If an account owned by only one of you is used for the rental activity and/or the rental is only in one of your names, that person should claim the rental activity.

If you live in a community property state, you will be required to provide additional information regarding your spouse’s income.

Community property states: AZ, CA, ID, LA, NV, NM, TX, WA, WI
MFS and Community Property States

Re: My wife does not work, but is on the title of the rental house. Does she have to report half the rental income or can I just claim it all?

Hal_Al — Sun, 28 Mar 2021 13:40:00 GMT

Why are you asking? That is, what are you trying to do?

In general, you "follow the money". If you're getting the income and paying the expenses, you can claim it all. On the other hand, since you're both owners, you can split it. What you can't do is have her claim it all.

If you are filing a joint return, you question doesn't matter. In the rental interview, you'll be asked who's income it is. Answer either way.

Re: My wife does not work, but is on the title of the rental house. Does she have to report half the rental income or can I just claim it all?

Carl — Sun, 28 Mar 2021 14:10:03 GMT

Residential Rental income isn't reported as belonging to a "person"it's reported in the Rental & Royalty Income (SCH E) section of the program and all rental income/expenses will be on that SCH E. If you're filing a joint return, then when you initially set up that SCH E section of the program, you are asked to identify who owns that rental property; Be it you, your wife, or both of you.

Typically, if you're in a community property state, you just select "both of us". But regardless of who owns the rental property, when filing a joint return, the income is still "joint" as far as taxes go, on the federal return. (State returns could be a different matter)