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Jointly Owned Residential Rental with Mixed Use (50% owner uses for personal)

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last updated ‎January 14, 2020 4:44 PM

Mother and daughter purchased new condo.  Purpose is to rent it out during the winter and have mother live in it during the summer.  By definition, this is "mixed use." Title is in mother and daughter's names. Mother set up partnership for rental because she said AirBnB said she had to.

1) I don't think this needs to be a partnership.  Any reason why it should?  I think each owner should report their allocated amount on their 1040 schedule E.

2) Should I calculate "mixed use" (personal days vs. rental days) then allocate income and depreciation per ownership %, and expenses according to actual amounts paid by each owner? Daughter pays mortgage payment and mother pays utilities and other expenses.

Mother is my client and did not consult me until now (after the fact). I don't want to make this harder than it needs to be, but also want to treat for the best tax outcome.

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