Interesting Scenario - Tax Info Needed

[Account Closed]

Hello,

I am a property investor that currently purchased an investment property in MI. I purchased the property with a investor property. I am on the mortgage and we are both on the title. Due to his debt to income ratio he could not be on the mortgage. We are about to purchase another property the same way.

My question is for taxes at the end of the year how do we show we are both paying half the mortgage so I don't get taxed for the whole thing? We have a renter in the first property and make a profit of $600 a month but I only make $300 a month as we are 50/50. Do I pay the taxes on the profit so I will be able to purchase more property in the future? How does the IRS know we are splitting the cost for the property and taxes on the property?

Thanks much for all the help!

[Natalie Kolodij]

You will each just literally report 50% of everything on your own taxes

Make sure things like depreciation, utilities, taxes, mortgage interest - all get split between you two. 

I would literally track it all on one spreadsheet and just split it in half for each of your taxes.