Allocating rental income on shared second home My sister and I own a condo together (50/50) in Mexico. It's a second home for both of us. We both use it for personal use but also rent it out. Every year we have a method that we use to determine who gets to use it for which months. Whoever gets to use the condo for the month decides how to use it (in other words, use it personally or rent it out). My sister rents out her months much more than I do. Do we allocate to each other for tax purposes only the rental incomes we each received or do we have to split the total rental income 50/50. In previous years I assumed we would identify the rental income for tax purposes by who received it but the tax form documentation seems to specify we need to split it 50/50. What is the right answer? |