co-owned a rental with my sister and her husband that we sold in 2023. Accidentally miscalculated the cost basis ownership split between my sister & her husband and me. I was told as a rule of thumb not to touch the cost basis. How should i updated the correct split and record the sale of the rental in turbotax?
If this is the first year you have reported the rental property, you can change the basis you entered for the property. Since you don't claim depreciation for an asset you added and sold in the same year, changing the basis would affect only the gain or loss from the sale.
But if you have reported this rental in the past, you will need to adjust both the basis and the accumulated depreciation. The easiest way to handle this is to delete the property under Rental Assets and add it back. Let TurboTax calculate the "prior depreciation" for you. Then proceed to report the sale.
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