You will actually enter both your original cost of the property (but use only half since you are adding the second half of the property as a new property) and the fair market value for half of the property at the time it was converted to be a rental property. Then TurboTax will determine which value to use as the basis for depreciation.
Yes, you will continue to divide certain expenses between the two rental properties, such as your taxes and insurance which would be billed based on the whole building.
@athos_15
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