How to handle accounts/taxes on a joint ownership property?
My partner and I are unmarried and just purchased our first rental property. We live in California, but the property we purchased is in Kansas City. We're working with a property manager and I want to ensure we get our accounting set up properly for tax season.
We had opened a joint checking & savings account that we used to pay our lender from, thinking it would be easier to keep track of all income and expenses in a single, separate account. Our property manager is asking whether we'd like to receive our income distributions separately, and if so, whether they should be sent to separate accounts or the same account.
Is keeping all income and expenses in a single account important? Do we need to begin using accounting software like Quickbooks for tax purposes? Anything else we need to think about on our first rental property?
Any advice or resources would be much appreciated.
Thanks,
Ben