Yes to both. 🙂
For the following, I am going to assume were only two Joint tenants, and they were not a married couple that lived in a Community Property State.
You change the current assets to 50% of the basis, and 50% of the prior depreciation. Keep the original "placed in service" date. So 50% of it continues.
Add duplicate assets, using 50% of the Fair Market Value at the date of death, and use the "placed in service" date of the date of death. So the other 50% is treated as beginning a new 27.5 year depreciation schedule.
When you eventually sell the property, you should probably manually add things together and report it in the Sale of Business Property section (not the rental section).
