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Level 1
posted Jun 1, 2019 8:30:05 AM

Should Depreciation be split?

We sold rental property that we share w/ a 40/60% split. I noticed on Schedule E, the entire amount of Depreciation is included in line 20.(not a 40/60 split). Is the 'Cost basis' adjusted with 40/60% or entered as 100%?

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1 Best answer
New Member
Jun 1, 2019 8:30:06 AM

The cost basis for depreciation is entered only for the amount of the property that was paid for by each owner.  If you only paid for 40% of the purchase price, that's all you enter as your cost basis for depreciation.

2 Replies
New Member
Jun 1, 2019 8:30:06 AM

The cost basis for depreciation is entered only for the amount of the property that was paid for by each owner.  If you only paid for 40% of the purchase price, that's all you enter as your cost basis for depreciation.

Level 1
Jun 1, 2019 8:30:07 AM

Just to clarify - the cost, the improvements, the depreciation & the amount the property sold for.. should be entered with the 40% or 60% amounts? Not the full (100%) amount?