Overview
On Joynt Pro, the property’s financial activity and important documents live in one place. Joynt prepares year-end reports from that record. A tax professional still prepares the filings.
- Expenses, payments, and other activity are recorded in Joynt through the year, so you are not rebuilding everything from bank statements and email.
- For properties using the Operating Agreement, Joynt posts an annual report within 120 days after year-end, including a balance sheet and a cash flow statement.
- An LLC is usually treated as a partnership: the LLC files a return, and each owner gets a K-1. A TIC is usually different: each owner reports their share on their own return.
- Renting the home, using it yourselves, or doing both can change which forms apply and how expenses get split.
- Formation papers, the Operating Agreement, tax returns, and other ownership records stay in the Joynt portal for the group and its professionals.
- The Management Coordinator arranges the LLC’s tax filing. Each owner still works with their own tax professional for their personal return.
Owning property with other people can create financial reporting, tax preparation, and recordkeeping responsibilities that are difficult to manage through spreadsheets, email threads, and scattered files.
Joynt helps by organizing the property’s financial activity, preparing year-end reports, and keeping important ownership documents available through the Joynt portal.
Important tax and legal information: This FAQ provides general educational information and is not tax, legal, or accounting advice. Tax treatment depends on the ownership structure, property use, owner circumstances, and applicable law. Joynt prepares financial summaries and maintains records, but a qualified tax professional must determine which forms are required and how each owner should report property-related activity. Each owner should consult their own tax and legal advisors. This FAQ does not modify or replace the Joynt Operating Agreement, Joynt Service Agreement, or any other governing document.
What tax information does Joynt prepare?
Joynt prepares organized financial summaries that owners and their tax professionals can use when preparing applicable tax returns and forms.
Depending on how the property is owned, used, and treated for tax purposes, Joynt’s records may support:
- The property-owning LLC’s federal and state tax returns
- Schedule K-1s for individual LLC owners
- Mortgage-interest and property-tax reporting
- Rental-income and expense reporting
- Applicable 1099 forms
- Other supporting tax schedules and documents
Joynt provides the organized financial information. A qualified tax professional determines which forms are required, prepares the official tax filings, and advises each owner about their individual tax situation.
What is included in Joynt’s annual report?
For properties using the Joynt Operating Agreement, Joynt prepares and posts an annual report within 120 calendar days after the end of each year.
The report includes:
- A year-end balance sheet
- A cash flow statement
These reports give the owners and their tax professional a clear starting point for preparing tax returns and understanding the property’s finances.
From the Joynt Operating Agreement
“Within 120 calendar days after the close of each calendar year, Joynt shall prepare and post to its online portal an annual report for the previous year, including a year-end balance sheet and a cash flow statement.”
How does tax reporting work when the property is owned through an LLC?
A domestic LLC with two or more members is generally treated as a partnership for federal tax purposes unless it qualifies for or elects a different tax treatment.
Under the default partnership treatment, the LLC generally files Form 1065 and provides each owner with a Schedule K-1. The K-1 reports the owner’s share of the LLC’s income, deductions, credits, and other tax items.
Different treatment may apply if the LLC:
- Makes a valid election to be taxed as a corporation
- Qualifies for and uses the tax treatment available under Internal Revenue Code §528
- Is owned solely by spouses in a community-property state and qualifies for special treatment
- Otherwise qualifies for an exception under applicable tax law
The Joynt Operating Agreement specifically anticipates that some qualifying property-owning LLCs may use the tax treatment available under §528.
A qualified tax professional determines the LLC’s appropriate tax treatment and the returns and supporting forms it must prepare.
How does tax reporting work when the property is owned as a TIC?
A tenancy in common, commonly called a TIC, is different from an LLC. Each TIC owner holds a direct interest in the real estate rather than an ownership interest in a separate entity that owns it.
Direct co-ownership is not automatically treated as a partnership for federal tax purposes. If the arrangement qualifies as direct co-ownership rather than a partnership, the TIC generally does not file Form 1065 or issue Schedule K-1s.
Instead, each owner generally works with their tax professional to report their individual share of applicable items, which may include:
- Rental income
- Property operating expenses
- Mortgage interest
- Property taxes
- Depreciation
- Income or proceeds from a sale
Joynt’s financial summaries can help organize and allocate this information among the TIC owners based on their ownership arrangement and the property’s financial records.
When could a TIC be treated as a partnership?
The answer depends on how the property is operated.
Holding, maintaining, and leasing jointly owned property may qualify as direct co-ownership. But if the owners provide substantial services, operate a shared business, or conduct activities beyond holding and maintaining the property, the arrangement could be treated as a partnership for tax purposes.
If the TIC is treated as a partnership, Form 1065 and Schedule K-1 reporting may become necessary.
A qualified tax professional should determine whether a particular TIC qualifies as direct co-ownership or must be treated as a partnership.
Common tax forms and schedules to be aware of.
The forms that may apply depend on whether the property is owned through an LLC or directly as a TIC.
The examples below describe Joynt records that may support tax preparation. Some filings also require information obtained directly from owners, lenders, closing agents, vendors, prior tax returns, or other sources.
| Form or schedule | Ownership structure | When it may apply | How Joynt’s records may help |
|---|---|---|---|
| Form 1065 | Multi-member LLC | The LLC uses the default federal partnership treatment | Year-end balance sheet, cash flow statement, income and expense records, owner allocations, contributions, assessments, distributions, and ownership records |
| Schedule K-1 | LLC taxed as a partnership | The LLC files Form 1065 and reports each owner’s share of its tax items | Ownership percentages, contributions, assessments, distributions, allocated financial activity, and ownership changes |
| Form 1120-H | Qualifying property-owning organization | The organization qualifies for and elects treatment under Internal Revenue Code §528 instead of its otherwise applicable return | Annual financial reports and transaction records that can help the tax professional classify income and expenditures |
| Schedule A | Individual direct owner, including a qualifying TIC owner | An owner may qualify to personally deduct mortgage interest or property taxes they are responsible for and paid | Records showing the owner’s contributions toward mortgage and property-tax payments |
| Form 1098 | LLC or TIC with a mortgage | Reportable mortgage interest was paid during the year | Mortgage-payment histories and owner allocations that may help document how interest payments were shared |
| Form 1099-S | LLC or TIC | The property or a reportable real estate interest is sold | Ownership allocations and sale-related documents maintained or uploaded in Joynt |
| Schedule D or Form 8949 | LLC or individual owner | The property or an ownership interest is sold and capital-gain reporting applies | Acquisition records, ownership changes, allocated sale proceeds, and closing documents maintained or uploaded in Joynt |
A TIC that qualifies as direct co-ownership generally does not file Form 1065 or issue Schedule K-1s. Each TIC owner reports the applicable property-related items on their own tax return.
A multi-member LLC, by contrast, is generally treated as a partnership by default unless it qualifies for or elects a different tax treatment.
Additional forms and schedules when the property is rented.
Renting the property may create additional reporting requirements for the ownership group and the individual owners.
| Form or schedule | Ownership structure | When it may apply | How Joynt’s records may help |
|---|---|---|---|
| Form 8825 | LLC taxed as a partnership | The LLC earns rental real estate income and reports its rental activity with Form 1065 | Rental income, operating expenses, repairs, taxes, insurance, utilities, management expenses, and available rental and usage records |
| Schedule E | LLC or TIC owner | An LLC owner reports applicable K-1 items, or a TIC owner directly reports their share of rental income and expenses | Rental income, operating expenses, owner allocations, payment histories, and available rental and personal-use records |
| Form 4562 | Rental property owned through an LLC or TIC | Depreciation is claimed for the property, improvements, furnishings, appliances, or other eligible assets | Purchase, improvement, furnishing, appliance, and capital-expenditure records maintained or uploaded in Joynt |
| Form 8582 | Individual LLC or TIC owner | An owner has rental or other passive-activity losses that may be limited | Current-year rental-income and expense summaries and the owner’s allocated share of the rental activity |
| Form 1099-NEC | LLC or TIC rental activity | Reportable payments were made to certain independent contractors | Payment records showing amounts, dates, purposes, and recipients when recorded in Joynt |
| Form 1099-MISC | LLC or TIC rental activity | Certain rents or other reportable payments were made | Payment records showing amounts, dates, purposes, and recipients when recorded in Joynt |
| Form 1099-K | LLC or TIC receiving processed rental payments | Rental payments were processed through a rental platform or payment processor | Rental-income and deposit records that may help reconcile the form with amounts received |
| Form 4797 | LLC or TIC with rental or depreciable property | The rental property or another depreciable asset is sold | Property-cost records, capital improvements, available depreciation-related records, and sale documents maintained or uploaded in Joynt |
| Form 6198 | Individual LLC or TIC owner | An owner’s deductible rental loss may be limited by the amount they have at risk in the activity | Owner contributions, distributions, ownership percentages, shared-debt allocations, and available liability records |
How rental reporting generally works for an LLC
For an LLC taxed as a partnership, rental reporting generally follows this path:
- The LLC reports its rental income and deductible rental expenses on Form 8825.
- Form 8825 is attached to the LLC’s Form 1065.
- Each owner receives a Schedule K-1 showing their allocated share of the LLC’s tax items.
- Each owner generally reports the applicable K-1 information on their personal Schedule E.
How rental reporting generally works for a TIC
For a TIC treated as direct co-ownership:
- The group generally does not file Form 8825 or Form 1065.
- The owners generally do not receive Schedule K-1s.
- Each owner generally reports their direct share of the rental income and expenses on their own Schedule E.
- Form 4562 may be used to calculate depreciation.
- Form 8582 may apply if the owner has passive-activity losses.
Joynt’s records can help document how income, expenses, and payments were divided among the owners. A tax professional determines which amounts are reportable or deductible and where they belong on each return.
What if the property is used personally and rented?
Vacation and second homes may be used by the owners, rented to others, or used for both purposes. How the property is used can affect which income must be reported, which expenses may be deducted, and which tax forms apply.
When is a property treated as a residence?
Under IRS rules, a dwelling is generally considered used as a residence when personal use exceeds the greater of:
- 14 days during the year, or
- 10% of the total days the property is rented to others at a fair rental price
Personal-use days can include days the property is used by:
- Any person who owns an interest in the property
- Family members of an owner, subject to limited exceptions
- Someone participating in a reciprocal home-use arrangement
- Anyone paying less than a fair rental price
This means use by one co-owner or an owner’s family can affect the tax treatment of the property for the group. IRS Topic 415
What if the property is rented for fewer than 15 days?
A special rule may apply when a property is used as a residence and rented for fewer than 15 days during the year.
In that situation, the rental income generally is not reported, but rental expenses generally cannot be deducted. The owners may still be able to claim otherwise qualifying personal deductions, subject to the usual rules and limitations.
How are shared expenses divided?
When a property has both rental and personal use, expenses generally must be divided between those uses based on the applicable rental and personal-use days.
This allocation can affect expenses such as:
- Mortgage interest
- Property taxes
- Insurance
- Utilities
- Maintenance and repairs
- Management and advertising costs
- Depreciation
Rental deductions may also be limited when the property is treated as a residence. Some expenses that cannot be deducted in the current year may qualify to be carried forward, subject to applicable rules.
Joynt’s calendar, rental records, income history, and property expenses can help a tax professional understand:
- When the property was rented
- When it was used by an owner or an owner’s guests
- The rental income received
- The expenses paid for the property
- How those expenses were allocated among the owners
Joynt does not determine whether a reservation counts as personal or rental use, whether the rent reflects fair rental value, or whether a particular expense is deductible. A qualified tax professional must apply those rules.
How is mortgage interest handled for TIC owners?
A lender’s Form 1098 may not separately show the mortgage interest attributable to every TIC owner. One owner may receive the form even though multiple owners contributed to the mortgage payments.
Each owner’s ability to deduct mortgage interest depends on factors such as:
- Their ownership interest in the property
- Their legal responsibility for the mortgage
- The amount they actually paid
- How the property is used
- The applicable limits on mortgage-interest deductions
An owner whose share is not separately reported on Form 1098 may need supporting records or an explanatory statement with their personal return, as directed by their tax professional.
Joynt’s payment history and financial records can help document how mortgage payments and other property expenses were allocated and paid. Joynt does not determine whether a particular amount is deductible.
Who coordinates the LLC’s tax preparation?
For properties using the Joynt Operating Agreement, the Management Coordinator is an owner appointed to handle certain administrative responsibilities for the property-owning LLC.
The Management Coordinator is required to:
- Maintain records of the LLC’s receipts and expenditures
- Keep the LLC in good standing with governmental authorities
- Arrange for the preparation and filing of the LLC’s tax returns
- Make specified financial, tax, and ownership records available through Joynt
The Management Coordinator does not necessarily prepare the returns personally. They may retain a qualified tax professional and provide that professional with the financial reports and records maintained through Joynt.
From the Joynt Operating Agreement
“The Management Coordinator shall arrange for preparation and filing of Company tax returns.”
In this excerpt, “Company” means the LLC that owns the property.
What legal and ownership documents does Joynt help organize?
For an LLC using the Joynt Operating Agreement, the Management Coordinator maintains and makes the following records available through the Joynt portal:
- LLC formation documents
- The Operating Agreement and its amendments
- Annual financial reports
- The LLC’s tax returns for the three most recent calendar years
- Books and records relating to the LLC’s internal affairs for at least the current and three preceding calendar years
- Assumption of Obligations forms signed by new or incoming owners
For a property owned as a TIC, the relevant records may be different. When maintained or uploaded in Joynt, these could include:
- The property deed
- The TIC or co-ownership agreement
- Each owner’s ownership allocation
- Amendments to the co-ownership agreement
- Financial reports and payment histories
- Other documents connected to the property and its ownership
Keeping these records together makes it easier for owners and their authorized tax, legal, lending, and real estate professionals to find the information they need.
Does Joynt provide tax or legal advice?
No. Joynt maintains property records and prepares financial summaries that owners and qualified professionals can use.
Joynt does not:
- Determine which tax forms are required
- Prepare an owner’s personal tax return
- Decide whether an expense is deductible
- Determine whether a TIC qualifies as direct co-ownership
- Establish the property’s adjusted tax basis
- Calculate depreciation or depreciation recapture
- Guarantee any particular tax treatment
Each owner remains responsible for their personal tax reporting and should consult their own tax advisor.
The Joynt Operating Agreement also makes clear that each LLC owner is responsible for how they report the tax consequences of their participation on their personal tax return.
Joynt gives your group and its professionals organized financial and ownership records, not a one-size-fits-all tax answer.
Instead of rebuilding the year from bank statements, receipts, calendars, closing documents, and message threads, owners have clearer reports and important property records together in one place.
A qualified tax professional can then use those records, together with information from the owners and other reporting parties, to determine and prepare the forms required for the property’s ownership structure and circumstances.
