Follow the steps outlined by Tax Expert PattiF in the answer above to enter your property details on Schedule E Rental Income and Expenses.
Even though you can only sell the property as one, you do have two houses that you can treat individually as separate rental properties. This will give you the most flexibility and control over claiming your income and expenses for each property.
The main thing that you need to remember is when you are entering information that is combined such as your property tax or mortgage interest, you should report half on each property if they are both similar in size. If they are not similar to one another, prorate the amount accordingly. Do the same thing when you are entering the cost of the property for depreciation. Divide your total cost between the two houses according to their relative size.
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