How to enter Original Purchase Price of partial ownership rental property?

[Mrl510]

I own 70% of a rental property. Say the property cost 200K, do I only enter 70% of that in the section for "Original Purchase Price" or do I enter the whole 200K? Also do only enter 70% of the closing fees on the property?

Thanks

[ThomasM125]

You would enter your share of the property, or 70% of the cost in this case. The same would go for the closing fees.

One thing you need to be aware of is that since you own the property with at least one other person evidently, you will have a partnership by default, unless the activity is incorporated. As such, you should probably be filing a partnership or corporate tax return on which the total cost of everything will be reported, and you would receive a K-1 schedule reporting your interest in the venture, in the case of an S Corporation or Partnership.

[AmeliesUncle]

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@ThomasM125 wrote:

One thing you need to be aware of is that since you own the property with at least one other person evidently, you will have a partnership by default, 

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Probably not.  From the 1065 Instructions:

Mere co-ownership of property that is maintained and leased or rented isn't a partnership. However, if the co-owners provide services to the tenants, a partnership exists.

https://www.irs.gov/instructions/i1065#en_US_2021_publink11392vd0e339