married filing seperate

[tst]

have a rental owned jointly by husband and wife...better for them to go separate. any reason the sch E cannot be split in 1/2. I know you can move sch A deductions around if jointly owned but never split a rental 50/50. seems messy for proforma reasons if they go joint next year and will likely only give to one spouse but thoughts?

[joanmcq]

Depreciation has to be entered at 1/2, but for the E you can just report the income & other expenses at full and indicate the ownership,at 50%

[Abby Normal]

Can't take a rental loss under MFS.

[Jack from Ohio]

Can't take a rental loss under MFS.

The loss is limited to $25K for MFS.

[joanmcq]

Nope, it's zero for MFS.

[tst]

This is a gain...understand the loss rules thanks!

This is a very small gain...understand the loss rules thanks!

but ok to give one spouse 100% correct? you don't have to split 50/50 correct?

[joanmcq]

If the rental is community property, you have to split it.

[tst]

thanks joan

it is not a community property state in ohio

typically on sch A deductions etc split percentage as most advantageous. because a small gain and likely to go joint next year wanting for ease to put all on one spouses return.

[joanmcq]

Ah, the intricacies of Ohio returns! I have a client moving there. I think I'll send them to one of you Ohio guys. At least for payroll. :P

[Jack from Ohio]

Ah, the intricacies of Ohio returns! I have a client moving there. I think I'll send them to one of you Ohio guys. At least for payroll.

What part of Ohio are they moving to?