My wife and I file separate Schedule Fs for our small farm enterprise It has been split 50/50 since the beginning with half the cost basis of each asset entered for each spouse. if that is true then this doesn't make sense.
As it stands, I am showing a $2700 loss due to depreciation and she is showing a $10000 profit (unless you have other business activities). in 2021 you can gift her your entire or even partial interest in the farm - not sure what this would do for you both from a tax standpoint. spouses can make unlimited present interest gifts to each other without having to file a gift tax return. of course title to the property might need to be changed. backdating documents to 2020 for tax purposes could get you in a lot of trouble.
without changing the 50/50 ownership depreciation needs to be split 50/50.
