Add Spouse to Title of Rental Property

[Spencer71]

My Spouse and I file separately.  We currently own a few rental properties, but a couple we titled individually even though we purchased while married with joint funds (not sure why but it made sense at the time).  This year we decided to put both names on title of all of the properties and planned to split the rental income on each return.  

I understand adjusting the income to 50/50, but  am unsure of how to handle adjusted cost basis and depreciation.  Can I adjust the original basis to 50% and then copy that information to the other spouse? Should I just continue to have the one spouse claim all of the depreciation?  I was also under the impression that it didn't matter what date the title was changed, that we can assume the 50/50 partnership from the 1st of the year - can anyone second that advice I was given?

[Mike9241]

I understand adjusting the income to 50/50, but am unsure of how to handle adjusted cost basis and depreciation. Can I adjust the original basis to 50% and then copy that information to the other spouse? Should I just continue to have the one spouse claim all of the depreciation? I was also under the impression that it didn't matter what date the title was changed, that we can assume the 50/50 partnership from the 1st of the year - can anyone second that advice I was given?

I disagree because you are married filing separate. therefore, her return should only reflect a 50/50 split after title was transferred. 

[Rick19744]

@Mike9241 would your response be the same if they resided in a community property state?

[Mike9241]

because of the way they worded their thread, I got the distinct impression they were not in a CPS

"Should I just continue to have the one spouse claim all of the depreciation."  this would seem to indicate only one of them is reporting all the rental activity.   

Certain states have laws about community property defining how they expect MFS couples to share, or allocate, income. TurboTax has allocation screens and a worksheet to assist you in entering any adjustments your community property state may require when filing separately.

For more information, refer to IRS Publication 555 Community Property