In 2017 my fiance and I acquired a rental property. We married in 2018.We split income and expenses 50/50 in 2017 and allocated 50% of the value on each of our returns.Filing a join return in 2018, the basis should now be doubled combining both of our shares. Do I just edit the Schedule E worksheet updating the total and land value? Should "prior depreciation" be updated to reflect the total claimed by both of us? Does the same apply to amortized refinance expenses?

You are correct in that the basis should now be basically doubled.Do I just edit the Schedule E worksheet updating the total and land value? --You can adjust it here or in the step by step in the Asset/Depreciation interview section, whatever you are most comfortable doing. Should "prior depreciation" be updated to reflect the total claimed by both of us?-- Yes, the prior depreciation taken on other return for prior years needs to added to your prior depreciation taken. Does the same apply to amortized refinance expenses?--Yes, same guidelines apply to this also.

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watchawatcha

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How do I adjust a rental property's depreciable basis after marrying the other co-owner?

Forum|Forum|7 years ago
June 6, 2019
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In 2017 my fiance and I acquired a rental property. We married in 2018.

We split income and expenses 50/50 in 2017 and allocated 50% of the value on each of our returns.

Filing a join return in 2018, the basis should now be doubled combining both of our shares.

Do I just edit the Schedule E worksheet updating the total and land value?
Should "prior depreciation" be updated to reflect the total claimed by both of us?
Does the same apply to amortized refinance expenses?

TurboTax Home & Biz Windows

Best answer by MichaelL1

You are correct in that the basis should now be basically doubled.

Do I just edit the Schedule E worksheet updating the total and land value? --You can adjust it here or in the step by step in the Asset/Depreciation interview section, whatever you are most comfortable doing.
Should "prior depreciation" be updated to reflect the total claimed by both of us?-- Yes, the prior depreciation taken on other return for prior years needs to added to your prior depreciation taken.
Does the same apply to amortized refinance expenses?--Yes, same guidelines apply to this also.

MichaelL1Answer

Employee

You are correct in that the basis should now be basically doubled.

Do I just edit the Schedule E worksheet updating the total and land value? --You can adjust it here or in the step by step in the Asset/Depreciation interview section, whatever you are most comfortable doing.
Should "prior depreciation" be updated to reflect the total claimed by both of us?-- Yes, the prior depreciation taken on other return for prior years needs to added to your prior depreciation taken.
Does the same apply to amortized refinance expenses?--Yes, same guidelines apply to this also.