I have owned a rental property for about 10yrs. Last year I gave 50% of the ownership to my mother as payment for her original down payment for the rental.
So you paid back a loan (with interest, weather actual or imputed) from your mother, with equity in the property. That alone negates the need for me to go any further really, as you "need" professional help to handle this correctly. But to answer your question on ownership percentage:
With the TurboTax program, if you change the ownership percentage "or" cost basis of any depreciable asset, that will also change the depreciation history. This means your current depreciation and all future depreciation will be wrong. Every year.
You seriously need to seek professional help with this. This is expecially true if your state taxes personal income, as doing things wrong can become a double-whammy when you also pay state taxes.
Additionally, since your mother owns 50% of the property, she may need to start reporting it on her own tax return every year.
