Choose the response that best completes the following sentence. When two or more individuals share an ownership interest in a rental property, they should:

Make a determination as to how the income and expenses will be allocated by December 31 of the tax year.

Make a determination as to how the income and expenses will be allocated by the due date of the return.

Share the income and expenses in varying proportions each year to provide the maximum tax advantage.

Report their proportionate share of income and expenses on their individual return unless one of the owners relinquishes all control of the property with the intent of transferring their ownership interest.