Question

I own 50 pct. of a rental property. How do I determine my cost basis? The purchase price was 270k. What about the land value, is that exclude from the cost basis? Thanks.

Forum|Forum|6 years ago
March 2, 2020
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TurboTax Premier Online

Employee

The absolute easiest way to report it on SCH E on your personal 1040 tax return, is to say you own 100% of the property, and then enter 50% of *EVERYTHING* with absolutely no exceptions.

Otherwise, if this is a partnership with a person you are not married to and will never file a joint return with, it can be reported on a 1065 partnership return. The partership will then issue each owner a K-1 which each owner will enter on their personal 1040 tax return. Their share of everything will be on page 2 of the SCH E.