Selling a joint own rental property

Forum|Forum|5 years ago
April 1, 2021
7 replies
43 views

I co-owned rental property with my ex-boyfriend. We split the deductions each year. We entered the full amount and then claimed 50% of the income and expenses. We sold the house and each received 1099-S for half the proceeds. I assume we both claim 50% of the expenses to go along with that. The problem is when I enter half, it compares it to the values I entered when we put the rental in service (full value). When doing this it shows a large loss which isn't the case. When I use the full proceed and expenses, it creates a rather large debt and I can't do that on both of our separately filed taxes. How do I claim this sale? I do both of our taxes

DaveF1006

Level 15

It depends. I think the problem is that you put the full rental value when you put rental in service. That need to be adjusted in half also. Everything has to be reported in half for the calculations to come out correctly.

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Janette651Author

Level 2

So if I change the value of the property when purchased for this year, does it mess up previous tax returns?

if I put half the value, would I then claim 100% ownership and enter only half the income and expenses?

DaveF1006

Level 15

Yes, it could especially when calculating the depreciation recapture. Just to clarify, when you reported at the full value, has the depreciation you each received over the years have always been allocated evenly from the full value of the house?

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