Sold vacation/Rental Property. 50/50 ownerhsip. All proceeds distributed to one of the owners. is there a way to allocate 50% of proceeds?

[mark-shik]

50/50 ownership of vacation rental was sold. 100% of proceeds issued to one of the partners and 1099-s went to just one partner. is there a way to show the trail of 100% proceeds being allocated down to 50%?

[sjrcpa · Accepted solution]

If they owned it 50/50 why did one person get all the money?

[abctax55]

DO you mean that one owner got all the money?  OR, do you mean the F 1099-S wasn't split between the two owners?

[itonewbie]

Each owner's entitlement for the proceeds is determined generally based on their interest in the venture.  If they're 50/50 owner, the proceeds would generally be split 50/50.

Under the assignment of income doctrine, a taxpayer cannot avoid income tax by assigning the right to that income to someone else.  He/she would still be taxable on that income; amount(s) assigned to the other party without considerations may constitute a gift.