Splitting 1099 MISC with only one spouse listed

[Pantera22]

My husband received a 1099 MISC for our rental property. The entire amount was issued to him. How would we go about splitting the income when filing separately?

[CesarJ]

You can do a 1099-MISC from you to them for their share. You will need to enter the full amount then enter their half on your return as negative income to reduce yours.  

To  enter this income:

• Go to the rentals screen under Wages & Income

One to keep in mind:

Generally, if you receive a Form 1099 for amounts that actually belong to another person, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other owners showing the amounts allocable to each. You must also furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 with the IRS Submission Processing Center for your area. On each new Form 1099, list yourself as the “payer” and the other owner as the “recipient.” On Form 1096, list yourself as the “Filer.” A spouse is not required to file a nominee return to show amounts owned by the other spouse. The nominee, not the original payer, is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

[Pantera22]

@CesarJ can he file his half of the income with half of the expenses on his schedule E and I file my half as well without issuing an additional 1099 since I’m his wife? Or would this cause problems

What We Did on My Husband’s Return (He Received the 1099):

1. Entered the full 1099 amount exactly as it was issued.
2. Set ownership to 50%.
3. Entered 50% of the expenses.
4. Entered 50% of the cost basis (house, land, improvements).
5. Took 50% of the depreciation.

What We Did on My Return (I Did Not Receive the 1099):

1. Entered my 50% share of the rental income as cash income (since I didn’t receive a 1099).
2. Entered 50% of the expenses.
3. Entered 50% of the cost basis.
4. Took 50% of the depreciation.

I have not submitted anything yet so I can still make changes if needed.

[CesarJ · Accepted solution]

Yes, you can do that.  It's crucial for the recipient of the 1099-MISC to report the full amount of income on their tax return and then make the necessary deductions as outlined previously. For future reference, you might consider either claiming all income and expenses or asking the issuer to provide two separate 1099-MISC forms to divide the income.

@Pantera22