No, what I meant was to add an asset on each daughter's return for the house/land by using half the actual cost.
- Example: House total cost is $50,000 (includes land of 10,000) half the cost would be 25,000 (includes 5,000 land)
- Add the asset to each daughter's return and each daughter will have the correct depreciation expense without any manual change to the return. This will also be easy to report the sale in the future on each daughter's return.
If you had expenses greater than the amount being used for DeMinimis Safe Harbor (DMSH) of $2,500, they can be entered on line 19 if allowed.
- Anything that has a longer than one year life is a depreciable asset (which is also available for DMSH) then it is placed on the rental as an asset. Examples would be appliances, lawn tractor, or other equipment used totally for rental purposes. An example of what expense you refer to would be helpful.
You may use the safe harbor to deduct amounts up to $2,500 ($500 prior to Jan. 1, 2016) per invoice or item (as substantiated by invoice).
Continue to watch your other question for your answer. @GGBJr
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