It depends on your co-ownership agreement and how you agreed to handle owner occupancy.
In most cases, you split all income/expenses with the other owner. To enter this in TurboTax, indicate your ownership percentage and enter total income & expenses so the program can calculate your portion.
You may find the
best way to record this rental property is to divide
it into two assets, each with your ownership percentage, rather than one unit. In this way, you can work through
the interview for each unit, which will allow you to report one unit as converted to personal use. The other unit is rented at fair market so you can report as usual. Also,
if the rental status of one unit changes in the future (converted back to business use, sold, etc), you can report the change without
affecting the other unit.
If you do set up two
assets, you would need to divide shared expenses
between the two units yourself (TurboTax doesn't handle this
allocation). But if you have expenses specific to one unit (cleaning between
tenants, repairs, upgrades), you would enter these separately under the appropriate unit.
Look for the blue links (Learn More) in the Rental Property section in areas where you have questions.
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