You both need to amend your 2023 tax returns and each of you report half of everything related to the rental. You can't just change your rental from 100 to 50%. You will have to create a new asset that is 50% of the building and 5-% of the land. Alternatively, you can file the rental on a Form 1065 Partnership return. You will each get a K-1 every year to report the rental income or loss on your personal returns. You will both need file amended returns if you file as a partnership.
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