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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14869
Experience:  15years with H & R Block. Divisional leader, Instructor
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If a parent transfers their income producing property

Customer Question

If a parent transfers their income producing property (Rentals) to their children, can the parents report the income, expenses and depreciation on their tax return, if they pay the taxes?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello

No, a transfer of ownership means the rental income is reported by the owner of the property. Rental income is reported by the owner of the property.

The reporting of the child's income my be required on the parent's rate.

You may use Form 8615, Tax For Certain Children Who Have Unearned Income to figure your child’s tax if all of the following are true:

  • The child’s unearned income was greater than $2100.
  • The child is required to file a tax return.
  • The child was younger than age 18 at the end of the tax year or was younger than 24 and a full-time student or the child was 18 at year end but had earned income greater than ½ of her support.
  • The child had at least 1 parent alive at the end of the tax year.
  • The child is not filing a joint return.

Even if all of the above is true, you still have the option of including your child’s income on your own return by filingForm 8814, Parents' Election to Report Child's Interest and Dividends, but if any of the above is not true, then Form 8615 cannot be used.

Expert:  Robin D. replied 1 year ago.

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