I had a storm destroy sections of fence at a single family rental property I own. I intend to have all sections repaired by one fencing company on a single invoice. I have three different neighbors who all share a portion of the fence I will be replacing and luckily they have agreed to participate in splitting the cost for their section of the damaged fence. I am wanting to know what the best method would be for record keeping of the split cost (For Tax purposes mostly) I have a couple of ideas below of what I think could work but am looking for insight.
1. We all write separate checks (4 total) for different amounts totaling the fencing contractor's full invoice. We all keep our own records.
2. I write a check in the full amount to the fencing contractor and then am reimbursed by my neighbors for their portions of the payment. Then sign some version of a personal receipt from me to my neighbors as recognition of their participation in the transaction?
3. Ask the fencing contractor to bill us all separately (I assume they would not prefer this but may allow it if I request)
4. Some other method. I am open to suggestions.
Thank you!
P.S. The property is in Texas
