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About John Stancil, CPA
Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants. Visit my website at www.johnstancilcpa.com. Also visit my blog, www.thetaxdocspot.com.

Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill College

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Tax Law (Questions About Taxes) - Income taxes for co-owned rental property

Expert: John Stancil, CPA - 11/7/2009

Question
What is the best way to handle the income taxes for a 50-50 co-owned rental property that located in a state (Colorado) different from the state of the owner's residences? I'm looking for the simplest, most straight-forward way to offset the income with the expenses and to share that equally to each owner. If it's not necessary to do a partnership or LLC (which would require re-registering the ownership, right?), I'd prefer not establishing another entity.

Thanks very much for your help!

Answer
Lincoln,

Thanks for your question.

Since it is not a partnership or an LLC, it is simply a joint venture. Each of you reports half the revenue and half the expenses on Schedule E of your 1040.

Since the property is in Colorado, you will need to file a non-resident form for CO if you show a profit. Your home state will give you a credit for tax paid to CO, if your state has an income tax.

Hope this helps.

John Stancil, CPA

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