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Paga
Level 2

Can TurboTax divide depreciation for rental property based on percentage of ownership?

TurboTax can divide income and expenses for rental property based on percentage of ownership; but can it also divide depreciation?  It looks like it cannot.  Starting in 2022, my co-owner and I became 50% owners in a rental property and (for my tax return, we're filing separately) I have opted to have TurboTax calculate 50% of total income and expenses, and it calculates those correctly; but it seems to be giving me 100% of the depreciation.  How do I enter 50% of depreciation for my individual tax return to reflect 50% of ownership?


Thanks!

-Mike

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1 Reply
PatriciaV
Expert Alumni

Can TurboTax divide depreciation for rental property based on percentage of ownership?

It depends. If you were reporting the asset at 100% ownership on prior returns, you will need to convert that asset to personal use, then enter a new asset using half the adjusted basis. If you have not reported this asset on your return before, use half the adjusted basis (cost less accumulated depreciation) under Assets/Depreciation. This calculation functions differently than income and expenses, so you have to calculate your basis yourself.

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