Schedule E question


A

Alex M

My Ex and I rented our house during 2007 starting Jan 2007 and did not use
the house as our residence during 2007. We got divorced towards the end of
2007. Now we have a net income of $500 during 2007 after deducting all
expenses and taxes etc but without the depreication. Where should I indicate
on the Schedule E to indicate that this $500 is a joint income with each of
us accountable for $250 each.? Also is it necessary to take the
depreciation?
Thanks
VJ-
 
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P

Paul Thomas

Alex M said:
My Ex and I rented our house during 2007 starting Jan 2007 and did not use
the house as our residence during 2007. We got divorced towards the end of
2007. Now we have a net income of $500 during 2007 after deducting all
expenses and taxes etc but without the depreication. Where should I
indicate on the Schedule E to indicate that this $500 is a joint income
with each of us accountable for $250 each.? Also is it necessary to take
the depreciation


You should probably be filing a partnership return for 2007 for the rental
activity. You would split the net partnership profits via the K-1's
associated with that return.

Yes, go ahead and take depreciation.

Since it looks like you two still have the house, you'll need to do this
again for 2008.
 
E

ebetts3

My Ex and I rented our house during 2007 starting Jan 2007 and did not use
the house as our residence during 2007. We got divorced towards the end of
2007.  Now we have a net income of $500 during 2007 after deducting all
expenses and taxes etc but without the depreication. Where should I indicate
on the Schedule E to indicate that this $500 is a joint income with each of
us accountable for $250 each.? Also is it necessary to take the
depreciation?
Thanks
VJ-

--
Who has the property as a result of the divorce?
 
I

inky dink

Paul Thomas said:
You should probably be filing a partnership return for 2007 for the rental
activity. You would split the net partnership profits via the K-1's
associated with that return.

Yes, go ahead and take depreciation.

Since it looks like you two still have the house, you'll need to do this
again for 2008.
partnership return? I don't think that is necessary (see recent thread).

"go ahead and take the depreciation" - I am sure you did not intend this,
but that sounds rather optional. You MUST take the depreciation (well, you
don't HAVE to, but when it comes time to count your profits, the IRS will
treat it as if you did).
 
P

Paul Thomas, CPA

inky dink said:
partnership return? I don't think that is necessary (see recent thread).



Is there a way two unrelated individuals can file their business/rental
activity except as a partnership?
 
C

closet.disco.dancer

partnership return? I don't think that is necessary (see recent thread).

"go ahead and take the depreciation" - I am sure you did not intend this,
but that sounds rather optional. You MUST take the depreciation (well, you
don't HAVE to, but when it comes time to count your profits, the IRS will
treat it as if you did).
agreed. depreciation is not an optional deduction. also, the divorced
couple should probably file two separate sch. e's with the income and
expenses divided accordingly. no sense in filing a partnership return
imho.
 
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R

Ron Rosenfeld

Is there a way two unrelated individuals can file their business/rental
activity except as a partnership?
What about this statement from Pub 541:

"For example, co-ownership of property maintained and rented or leased is
not a partnership unless the co-owners provide services to the tenants."

--ron
 
M

Mark Bole

Is there a way two unrelated individuals can file their business/rental
activity except as a partnership?
Why can't a passive rental activity (no services are provided) be
treated as a business investment, with each owner reporting their own
share of rental income and expense on Schedule E?

Among other written materials, I see where Pub 527 states "If you own a
part interest in rental property, you must report your part of the
rental income from the property". Ditto for expenses. Later, it
indicates the place to report income and expenses is Schedule E (front
page).

-Mark Bole
 
J

joetaxpayer

Mark said:
Why can't a passive rental activity (no services are provided) be
treated as a business investment, with each owner reporting their own
share of rental income and expense on Schedule E?

Among other written materials, I see where Pub 527 states "If you own a
part interest in rental property, you must report your part of the
rental income from the property". Ditto for expenses. Later, it
indicates the place to report income and expenses is Schedule E (front
page).

-Mark Bole
I owned a rental condo jointly with a friend. In the description we
added "jointly owned with smith/jones SS#xxx-xx-xxxx.

I kept the records, and we never had any issue. All expenses were taken
50/50.

JOE
 
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R

Ron Rosenfeld

I owned a rental condo jointly with a friend. In the description we
added "jointly owned with smith/jones SS#xxx-xx-xxxx.

I kept the records, and we never had any issue. All expenses were taken
50/50.

JOE
Myself and an unrelated person also own rental properties (two office
condos) that we rent out. We provide no other services and do not file
partnership returns.

In Taxcut, on the worksheet, there is a spot for "percent ownership if less
than 100".

That percent would get appended to the description on schedule E.

The only issue was that the 1099's associated with the rental income would
get made out to me, using my SSN. So I would then turn around and issue a
1099 to my "partner" for his 50% share. (That turned out to be simpler
than trying to get the lessee's to make out two 1099's).


--ron
 

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