I live in a community property state. we are going to file MFS. We have two rental properties in this community state that owned jointly and expenses paid from a joint account. Can I deduct 50% of the income/loss on these two properties on my return? We are separated and living apart for 2 years but have not filed for a legal separation yet. Will I lose that $25,000 passive loss deduction against the active income? What other tax consideration should I consider? There are some properties in another community property state purchased by my spouse , but the tile is under his name and and a LLC. Will I get half of the income/loss of those properties too? My husband was applying section 467(C)(7)(A) and reporting them as an active income/loss last year that we filed joint return. Now that he gets 50% of the loss of these two properties in my community property state, will the other 50% Income/loss of these two properties will be added to his portfolio and get the section 467)C) (7) (A) treatment for this year too? On my schedule E's in my separate return, do I enter 50% of the activities in every line of this schedule? How about depreciation? Should I enter half of the purchase price of these properties to get my share of depreciation using Turbotax? What happens to the estimated taxes that my spouse paid, would that be split in half two? Too many questions but your input is really appreciated.
