I have a clients(they're sibling) and parents give them the property as a gift and they put it rental property for 2 years and planning to sell it now, How I can split the capital gain to both of them? When parents give this property to them, it's been a rental property of years and they have a lot of equity already. Please advice.
How have the rental income and expenses been reported each year? 50/50 on Sch E of each sibling's 1040 return? Did you use the parents basis to set up the asset depreciation on the rental?
