2 brothers own a rental house, want refinance but my client has bad credit

[Judy rocks]

2 brothers own a rental house, they want to refinance they have a real good deal.
The catch is one brother needs to be removed from the mortgage because of bad credit to get the deal.
The brothers are close and will continue sharing income expenses and the work at the rental.
Right now he is averaging about 5,000 of income per year from the rental.
Is his only option sell to his brother?
He will be still basically sharing ownership.
Can they make a private agreement?

[ATSMAN]

Judy why is this setup as a partnership? Are they in the real estate business?

They can do a Sch E, 1040 and each brother claim there share of rent income and expenses. I have many rentals on the book owned by siblings or parent/child and they split the income and expenses. Pretty straight forward.

[Judy rocks]

One has to get off the deed

Judy why is this setup as a partnership? Are they in the real estate business?

They can do a Sch E, 1040 and each brother claim there share of rent income and expenses. I have many rentals on the book owned by siblings or parent/child and they split the income and expenses. Pretty straight forward.

................ the issue is they can't refinance until the one with the bad credit gets off the deed, this is my client, can he still claim 50% of income and expenses

[Judy rocks]

the entity is reported on Schedule E form 1040

the entity is reported on Schedule E form 1040

[Kram BergGold]

Favorable Court Rulings

If you check past posts on this Forum you will find cases where a person not on a mortgage was allowed by the Court to deduct the interest. Then compare to your case and decide how to proceed.

[TAX4US]

I have seen where 1tp on deed but not the deed of trust and 1 on a deed of trust but not on deed. As stated above check this out.