I bought a rental property in 1992 for 158K.
I married in 1996 and added his name to the deed, so he became 50% owner.
We divorced in 2010 but the property was not part of the settlement — we continued to co-own it, as tenants in common, and split the income and expenses 50/50.
I bought him out in 2017 for $155K (half of the appraised FMV of 310k.)
I sold the property in 2024 for 475K, and costs of sale were 45K.
- What is my cost basis? I’ve read that it’s my original purchase price of 158 + buyout amount of 155. Also I’ve read that it’s my 50% of the original purchase price + buyout amount of 155 + amount of mortgage I assumed. (Actually I had to take out a new mortgage (“refi?”), in my name only, for 170K)
2. How do I enter the sale info in TT Premier (download version)? Under Income, Rental properties, Rental Summary, Sale of property/Depreciation, Assets, I have an asset entry for the original purchase and another one for the buyout. Also, after the divorce I adjusted the depreciation report to reflect only my 50% ownership. I don’t know if how I did this was correct, and now that I'm trying to input data for the sale, I don’t know if I need to split the sale amount and put half against each of the assets (the original purchase and the buyout). I'm concerned that would not match the 1099-S. Or can I somehow combine the two assets? Can I simply delete the two entries and put all the info into one entry? I’m not sure I should edit the depreciation info that was brought forward from my 2023 return. I sure don't want to trigger an inquiry from IRS if my info looks suspicious.
I appreciate any help!
