I bought my home as tenants in common with my sister and parents in 2017. I had 50% ownership interest, parents 30%, and sister 20%. It was agreed between us that I would take all of the depreciation for the rental portion. We purchased the home for 1,650,000, put in 200,000 in improvements, and sold it for 2,350,000 in 2021. My sister and I lived there as our principal residence and rented out part of the home for the first 3 years. For the last year before sale, we rented out the entire home. Just prior to the home sale in 2021, our parents gifted their 30% to my sister so we both had an equal 50% interest at the time of sale.
Where do we enter the sale of the home in TT and do we split all of the costs in two in terms of the cost basis?
