Update Ownership of Rental property from 66% to 100%

[narayanmg]

I jointly owned a foreign rental property with my dad. He passed away and I am currently the sole owner of the rental property. I am trying to update the ownership from 66% to 100%. What is correct way to do this in Turbo tax? 

[gloriah5200]

Probably the easiest way is to show the ownership of two interests, one is your original interest and the second is the inherited interest.  They will have different basis to go along with each one and values since an inherited asset generally gets a step up in basis on the date of the decedent's death.

[narayanmg]

Thank you Gloriah5200. If I understand correctly, I would need to  create a new entry for the property and specify the remaining 34%. Could you kindly confirm or suggest if my assumption is incorrect.

[gloriah5200 · Accepted solution]

Yes, you would have your 66% interest from prior years and then you would add a new entry for the 34%.  Each part will have a different adjusted basis.  It will be like having some new depreciable assets for it.

When you own a rental property, each asset of that rental property will have a placed in service date and adjusted basis and class life for depreciation purposes.

For additional information, please refer to:

IRS Publication 527 Rental Property

For additional information on how to determine the basis in assets refer to:

IRS Publication 551 Basis of Assets

[narayanmg]

Thank you. Appreciate the quick response.