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March 23, 2024
Question

Question on sale of rental property with 50% ownership

  • March 23, 2024
  • 1 reply
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Hello!  I own 50% of a rental property that was sold in 2023.  For inputting expenses, I show 50% ownership of the property.  Does this ownership percentage not transfer over when inputting the sale information for the asset?  I only have 1 asset for the property.  It automatically calculates basis and depreciation; is this for the entire property or just my 50%?  Do I need to enter property sale amount and sale expenses as 50%?  I know for ordinary rent and other expenses Turbotax will calculate these based on my ownership expenses, so I put in the full amounts.  My tax liability changed singnificantly when I just reduced the sales price to half so wondering if I also need to adjust basis and depreciation.  Appreciate any help you can provide!

    1 reply

    PatriciaV
    Employee
    March 26, 2024

    Enter only your portion of the sales proceeds, selling expenses, cost basis and depreciation. TurboTax does not apply your ownership percentages when entering sales information.

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    JulielewAuthor
    March 28, 2024

    Thank you!  Is the depreciation over the years figured on only my half of the dwelling as well or do I need to manually calculate?

    PatriciaV
    Employee
    March 28, 2024

    Depreciation is based on the original cost of the property. For this reason, enter only your portion of the purchase cost for depreciation.

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