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?
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.
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.
There is no purchase sheet. It was a mobile home purchased from a friend for cash several years ago. One of the taxpayers has been reporting the rental income and now they think they want to switch.
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.
You have clicked a link to a site outside of the ProConnect Community. By clicking "Continue", you will leave the Community and be taken to that site instead.
