Sch. E rentals split 50/50

Technical topics regarding tax preparation.
#1
juro  
Posts:
918
Joined:
18-Oct-2015 9:11am
Location:
USA
How to report? Do i list each revenue & expense item at 50%?
 

#2
Posts:
792
Joined:
21-Apr-2014 11:29am
Location:
California
In Lacerte, it allows one to enter the 100% numbers and then apply the ownership% to the totals.

For that reason, that is how I have done this for years.
 

#3
JR1  
Posts:
6043
Joined:
21-Apr-2014 9:31am
Location:
Western 'burbs of Chicago
You just have to remember what you're doing. Year before last, I entered my guy's figures at 50%...which then reduced them by 50% again and I didn't notice.....and he had profit!
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
For FB'ers: https://www.facebook.com/groups/BenRoberts/
 

#4
Nilodop  
Posts:
18759
Joined:
21-Apr-2014 9:28am
Location:
Pennsylvania
Now JR1, surely if each item of revenue and expense were reduced by 50% twice and the result was a profit, then there must have been double or quadruple the profit before the reductions. :)
 

#5
Chay  
Posts:
909
Joined:
22-Jun-2018 1:21pm
Location:
Virginia
If they're Schedule E rentals, generally report all income and expense figures at half their value on each return. However, there are cases when mortgage interest, real estate tax, and tax preparation fees could be disproportionate. Also, the elections made by each taxpayer may result in timing differences in the recognition of capital expenses.

But do keep in mind: if the rentals constitute a trade or business, they might actually be Form 1065 rentals.
 

#6
juro  
Posts:
918
Joined:
18-Oct-2015 9:11am
Location:
USA
Client sold a rental. do i report sales proceeds, gain, etc all at 50% on the form 4797?
 

#7
JR1  
Posts:
6043
Joined:
21-Apr-2014 9:31am
Location:
Western 'burbs of Chicago
Depends on the closing statement. You need to see who got the reported sale and apportion appropriately.
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
For FB'ers: https://www.facebook.com/groups/BenRoberts/
 

#8
Chay  
Posts:
909
Joined:
22-Jun-2018 1:21pm
Location:
Virginia
Is the rental a trade or business?

Is the arrangement one of "mere co-ownership of property that is maintained, kept in repair, and rented or leased"?
 


Return to Taxation



Who is online

Users browsing this forum: Joanmcq, keninmichigan, SlipperyPencil, wale89 and 109 guests