Joint rental property and percentage allocation

Forum|Forum|1 year ago
March 29, 2025
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Hello All

So this is my situation. Dad owns rental property with me in SC. He has 77% allocation of ownership and the rest is mine 23% (that is how is recorded in the deed) . The percentage allocation is based on him selling his other property in Florida doing a 1031 exchange thus investing all profit funds in new property. I took a HELOC from my main residence in NY to supplement the buy of this new rental property. Question is : Most of the expenses are mostly paid from rental income except in some instances where escrow is low and I had to add funds to cover (specially teh property taxes that were higher than expected as non residents) . Do we have to allocate the same percentage of expenses?

KrisD15

Who reports Schedule E and if you both do, how do you allocate income and expenses between the two Schedule E's?

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desanto05Author

Hi KrisD

We both filed Sch E in 2023 when be bought the property so I'm looking at bothe returns and I see amounts were split 77% and 23% so I'm guessing that is the way to continue. The only thing is that on the 70K I borrowed I paid the loan exclusively from my account - allocate this as well?