Thank you for your reply.
Go to the assets and depreciation section of your return.
This is the form 4562? Depreciation & Amortization Report?
You can change your basis in the house to the new amount.
How do you make this change in TT? If PersonA's current Joint Tenant declared share is 30% , when in 2019 PersonA's was the sole owner at 100%, how do you change / edit the basis? Some pervious comments suggest deleting the asset and inputting as a new asset (taking into consideration the prior depreciation). Is there a way to tell TT that going forward the remaining balance of the depreciation is now split differently?
Person A is now set with the change in value of the house for 2020 to match reality.
PersonA has been depreciating the rental house since 2010 year as sole owner. Up to 2019, it has been 9 yrs. Let's say the original basis was $100,000. So $100,000 / 27.5 = $3,636 depr per year. At the end of 2019 tax year, the NBV = $100,000-(3636x9)=$67,276. In 2010, ownership change from sole owner (PersonA) to Joint Tenants (PersonA-30% & PersonB-70%). At this point, how do I tell TT to adjust the current year depreciation to $1,091 ($3,636 x 30%)?
Person B will now depreciate the rental on their return for their investment amount for 27.5 years as it is a new rental to them.
For PersonB, their portion of the depreciation should be $2,545 ($3,636 x 70%)? When this new asset is entered into TT, the Date in Service will be 2021, or do I still enter in the historical date? Will the basis for this new asset be original basis + all prior depreciation?
Thanks for all your help!
