Help Regarding EIN/LLC

[Punith Shetty]

My sister and I co-own a rental property, with each of us holding a 50-50 share. Our property manager mentioned that they cannot collect rental income for one property and divide it between multiple SSNs.

Here's their suggestion: "They are operating a business, and the IRS considers it a partnership. Forming an LLC isn't required to establish a partnership. They can choose any business name they prefer and then obtain an EIN for it. They will need to file a partnership tax return, and each owner will receive a K-1, which will include their individual SSN. This is how the rental income is reported on their personal tax return."

please advise!

[Michael Smythe]

@Punith Shetty your PMC is incompetent or lazy - fire them!

Most PM software allows multiple owners and once set up, automatically splits everything.

We once managed a property with ELEVEN owners!