Tax related questions for partners
Hello All,
I purchased a property with a friend/partner roughly 2 years ago. We used to live in the property together as college roommates but have now both graduated and have since moved out. We now rent this property and it has done very well for us. We currently do not have an LLC formed. The property is in Milwaukee but I currently live in Minneapolis. My question is that most lenders want to look at our Schedule E for income information when purchasing new properties. On our credit score the full property expense will show up but we currently split the income for our property 50/50 on our taxes. We are looking now to purchase property separately in the coming years. In order to help cover the homes expense for our DTI, one of us would need to report all of the income from the property while the other reports none to pass the 50% DTI requirements. Is there any way to get around this? Is the only way to show all of our properties income to have one of us report all of the income on our taxes while the other reports none? I have really only tried larger banking entities so far for qualifications needed.
Thanks for any advise,
Timothy Garman