Q. I want to stop reporting it in my tax return for 2021 and have my son to report everything in his tax return for 2021 tax year.
A. Yes, you can (probably) do that. When you son sets up the depreciation schedule, TurboTax will automatically show the prior deprecation based on the 2007 acquisition date he enters. Verify the amount and change it if needed. So, yes, he picks up the depreciation schedule where you left off.
It is not necessary to do a partnership return and issue K-1s. But, you must have some reasonable basis for the splitting of the income and deductions. "It comes out better taxwise" is not a valid reason. A 50/50 split, based on ownership, is the most reasonable allocation. But, you can take a "follow the money" approach. If all the income comes to him and he pays all the expenses, then the IRS will probably find it's reasonable for him to report it all on his taxes.
