Co-Own rental property with Brother - Tax Advice

[Sonu Sidhu]

I co-own a rental property with my Brother (purchased last year). He paid 100% of the expenses for the property this year, and also received 100% of the rental income. (This includes mortgage interest).

Do I have to report anything on my end when I file?

Also, for 2018, we will be splitting all expenses 50/50. So if he claims 100% in 2017, will we be able to switch to 50/50 for the 2018 return?

Thanks for the help!

[Sonu Sidhu]

Hi @Michael Plaks, thanks for the input! 

I do agree with you that there was a lack of communication & the right way to go about this would be to divide costs 50/50 with proper split of expenses between us. We are going to amend his return to show the correct 50/50 amount and made the decision to have much more concise communication, that way we don't trigger any red flags in the future.

Thanks for the help!