Did you actually sell 1/2 the property or take on a partner in the rental ? I highly recommend you seek local professional assistance to determine all the choices you are allowed and the pros and cons of them all. Some states may require a partnership return to be filed for the joint rental property.
And you missed one step in the sale calculation if you really did complete a formal sale when you added his name to the deed.
Of the $84K of profit the depreciation of $10K depreciation must be recaptured at your regular tax rate and then the rest gets cap gains treatment.
