If my son and I bought a house together and I handle the rental management part and he is responsibl

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WilliamP
WilliamP Member Posts: 11 Level 2
edited January 15 in Filing my taxes

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?

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  • Taxlady06
    Taxlady06 FreeTaxUSA Agent Posts: 59
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    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.

  • WilliamP
    WilliamP Member Posts: 11 Level 2
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    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.

  • Taxlady06
    Taxlady06 FreeTaxUSA Agent Posts: 59
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    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.