Thank you in advance to whoever decides to read this and offer their insight.
A friend and I own residential rental properties as Tenants in Common, 50/50 split under our TIC agreement. We have a federal tax question that our CPAs disagree on.
His CPA says we need to create a JV entity and get an EIN, create a partnership return for the JV, and issue K1s to ourselves.
My CPA says that's unnecessary and that we can just each report 50% of the income and expenses -- rent, P&I, insurance, etc. -- under our own Schedule E.
From my research, it seems like the difference might lie in the question of whether we are a Qualified Joint Venture. However, everything I can find about QJVs is trying to answer questions for spouses, which we are not.
Which CPA do you agree with and why?