rental income and expenses for joint tenants Ok, first the relatively easy question: My husband and his brother own a residential property as joint tenants. They do not live there. My husband is receiving rental income. Who reports the income and how much? What about deductions? Does it matter who receives the rent or who pays the expenses?
Now, the complicated part: They also own a restaurant which is an S corporation. The restaurant is the entity which is paying the rent. It's for storage of restaurant supplies. They make a check out to my husband every month. In addition, a couple of employees live there on and off. They are not charged any rent or any other expenses. The restaurant also pays the expenses for the house (taxes, insurance, etc.) So I was wondering if anyone could tell me how to handle this and what should be done in the future. Any advice would be greatly appreciated. |