- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
two unmarried taxpayers live together as a couple. One has been reporting rental income. What are the ramifications if the other taxpayer now wants to claim the rental income?
Best Answer Click here
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Who owns the rental property?
Slava Ukraini!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
They purchased the property for cash jointly so there is no clear ownership. The tax parcel is listed in one of their names only. They also purchased appliances etc which is being depreciated.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
The purchase settlement sheet will show the legal owner.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
There is no purchase sheet. It was a mobile home purchased from a friend for cash several years ago. One of the taxpayers has been reporting the rental income and now they think they want to switch.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Why are they thinking that now?
Slava Ukraini!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
One partner just started receiving SS and wants to claim the rental income. They both file single so the other partner who still works would have less tax to pay. Overall the two would receive a larger refund if they switch.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
That comes as a complete surprise. If they both own the property they both should be splitting the rent - not one reporting it over the other because it saves taxes. I think the IRS kinda frowns on those kinds of things.
Slava Ukraini!
