If my son and I bought a house together and I handle the rental management part and he is responsible for the morgage, can he write off the morgage interest on his taxes and I write of the properties income and expenses on my taxes?
If you and your son jointly own a rental, you will divide all of the income and expense based on your ownership agreement. You will then each file a Schedule E to report your individual share of the income and expenses.
Thanks so much. Does that mean that we can each take $25,000 in real estate losses or do we have to split the losses? Do we also split all of these real estate losses that are carried forward.
Rental loss limitations may come in to play based on your filing status and your participation in the rental so I cannot say for sure if you will each be allowed to take a $25,000 loss. I would suggest that you determine how much of the total income and expenses apply to each owner. You can then enter this information in the Rental Income section and a Schedule E will be generated based on your portion of the amounts. A loss or gain will then be calculated based on the income and expenses entered.
