Joint ownership 4 plex with adult child (18). TAX how to?
4 Replies
Tristan Cortez
Rental Property Investor from San Antonio, TX
posted 12 months ago
2019 I purchased a 4 plex with 18 yr old son to get started real estate investing. Son is primary on the loan (so his ssn listed on 1098 but it is a joint ownership mortgage. he is full time student so not making much (any) income. we have not established a partnership or an LLC. Can I just add this to my taxes as a new rental property without a partnership or LLC or do I have to establish one by completing the irs form? How do i do this with his ssn on the 1098 Mort. form but I am paying for everything?
Jacob Sampson
Investor from Topeka, Kansas
replied 12 months ago
You don't need an LLC. Just talk to a local accountant. This sort of thing is done all the time. If you are 50/50 partners then 50% of the profit/loss will flow to your personal taxes and 50% will flow to your sons.
Tristan Cortez
Rental Property Investor from San Antonio, TX
replied 12 months ago
Thank you Jacob. I appreciate it.
Basit Siddiqi
Accountant from New York, NY
replied 12 months ago
@Tristan Cortez
You can purchase a property with another individual through an entity(partnership, LP, LLC, etc) or as tenants in common.
You should consult with an attorney on the pros/cons of each.
Regarding how to report it on your taxes, it really depends on who owns the property and is required to make the payments.
Who has title to the property?