Hi Carl,
Thank you for your detailed reply!
I just want to confirm my understanding is correct:
1. From now on, a single property will become 2 assets in Turbotax for all coming years until the property is sold. The 1st one is the original which will not be changed at all, the 2nd one is just the step up portion of the same real property. These two will always be kept separately in Turbotax. Is that right?
2. Do I need to prorate all my expenses, one by one, between these two assets every year? Can I leave everything to the original asset as before, and put nothing (No income, no expense) in the newly created "step up" asset? This way, the "step up" asset will only have depreciation but nothing else. Turbotax will automatically combine all rental assets when calculating total rental income and tax, so to me, the end result will be the same and it will save me a lot of time to prorate and divide all expenses between these two assets every year. Is this allowed?
Thank you for your help!
