I have a question related to how to account for unequal expenses with a 50/50 partner on an investment property.
My partner got a mortgage (in her name only) for a short term rental. It is her only mortgage.
We split all the upfront closing costs, but she alone has paid all the monthly mortgage payments.
Both our names are on the title, so we are 50/50 owners of the property She does not own any other RE. I own two other properties (a primary and a long term rental)
We have split all other expenses 50/50 (a complete renovation) incurred in 2022.
We did not have any rental income in 2022 as I'm not done with the reno yet.
I'm a bit confused about how we each account for this in turbo tax premiere. Do we both add the property as 50% owners and amortize the adjusted cost basis over the 27.5 years? And we both add the cost of the renovations in 2022 as a 27.5 year deprecation, but only she ads the mortgage interest, PMI insurance, prop tax and hazard insurance as 100% on hers, since I did not contribute to any of those last year, as an "intangible asset" and enter one year as the amortization period? Would she have to enter double the amount spent because TT wants to split it in half, even though she paid 100% of these costs? I'm guessing only one year because those expenses are incurred yearly, and in the future when we start renting, we will split proceeds and I will also start contributing toward the monthly payments? Thanks for the advice.
