Discussion:Rental Income/Expenses Split?

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Discussion Forum Index --> Tax Questions --> Rental Income/Expenses Split?


Gwh33 (talk|edits) said:

8 February 2007
Does it get crazier than this? I have two clients: mom and son. Son couldn't qualify for a rental property on his own so mom co-signed. They are both listed on the 1098's, however, mom's SSN is primary. Son collected rent for 6 months and paid expenses. The son was injured and became disabled in 2006. His gross earnings for the year were $4,500. Mom is a counselor and earned in excess of $100K. Bottom line is this. Son does not need the deductions: in all with depreciation approximately $20,000. I want to shift 100% of the rental activity to mom's return. Is this acceptable? Now, to complicate things,the house is now in foreclosure and there will be a 1099-C issued in 2007 (the amount is uncertain, but safe to say around 100K). Since the son is insolvent and will most likely file for bankruptcy, the bank will issue the 1099-C to mom. She is not insolvent and won't bankrupt. I want to show 100% ownership for mom so she can write 100% of the rental loss upon sale (foreclosure) against the 1099-C she will receive. Is my thinking sound here? Thanks for any help!!!

Kevinh5 (talk|edits) said:

8 February 2007
Could you classify it as a partnership and allocate any way you want?

Alakaszyk (talk|edits) said:

20 July 2007
Same question... Can anyone help?

Riley2 (talk|edits) said:

21 July 2007
Only the equitable owner of property may claim depreciation deductions. Not sure who is the equitable owner here. How is title held? Is it tenancy in common or joint tenancy?

Larry0434 (talk|edits) said:

21 July 2007
Probably to late for this. Place property in LLC, use special allocations.

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