If you are going to report your half of the rental on your tax return (as opposed to a Form 1065 - Partnership return, as discussed above, just treat your 50% as if it was the entire rental property. Treat your 50% as if it was a stand alone piece of property you owned 100% of. You report 50% of the total rent. You will report 50% of each expense. You will set up an asset with a basis that is 50% of the actual cost of the entire house. The calculated depreciation on your return should be 50% of the total depreciation. The other owner should have an identical (or very close to it) Schedule E.
Or, as discussed above, you can file a Form 1065 for 100% of the house, the rent, expenses, etc., and then you will get a Form K-1 with your 50% of the revenue, expenses, etc. to enter on your tax return.
To report the depreciation on Schedule E, you have to set up the property (your 50%) as an asset. Once the asset is set up, the program will calculate the depreciation and include it on Schedule E. TurboTax will guide you through setting up the asset in the rental property section. You will need the property tax assessment (which you should be able to get online from your county tax assessors office) in order to determine the value of the land, which must be set up as a separate asset that is not depreciated.
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