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Level 2
February 18, 2020
Solved

rental income

  • February 18, 2020
  • 7 replies
  • 58 views

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?

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Best answer by IRonMaN

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.  


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.

7 replies

IRonMaN
Level 15
February 18, 2020

Who owns the rental property?

Slava Ukraini!
lindaleeAuthor
Level 2
February 18, 2020

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.

 

 

sjrcpa
Level 15
February 18, 2020

The purchase settlement sheet will show the legal owner.

The more I know the more I don’t know.