You are correct in that the basis should now be basically doubled.
- Do I just edit the Schedule E worksheet updating the total and land value? --You can adjust it here or in the step by step in the Asset/Depreciation interview section, whatever you are most comfortable doing.
- Should "prior depreciation" be updated to reflect the total claimed by both of us?-- Yes, the prior depreciation taken on other return for prior years needs to added to your prior depreciation taken.
- Does the same apply to amortized refinance expenses?--Yes, same guidelines apply to this also.
