I have a rental property co-owned with a brother. I have had a depreciation schedule for the building based on my ownership percentage when it was purchased. A fire on the property necessitated a near rebuild of the property. Insurance covered all but $100k of the repair costs. The other family member paid the extra $100k in exchange for an increase in his ownership percentage. Two questions:
Can I keep my existing depreciation for the original property and treat the $100k as an improvement that only he needs to add as a new asset with its own depreciation schedule?
Does the fact that the insurance repairs resulted in an almost-new building mean I should change my depreciation basis for the building asset in TurboTax?
