When entering rental income for a property that I own 50% of, do I put the entire amount that the property took in or just the 50% of it that I received?

[nicholas-corley]

TurboTax gives the option of entering all of the expenses and then dividing them according to ownership for you, or "you do the math" and only enter the expenses you were responsible for. The same option does not appear for income, however, after I enter the percentage amount of income that I received, the Schedule E shows the amount has been divided again.

[Shannon B1]

If TurboTax does the calculations, it will divide all the information you enter for your rental property by your ownership percentage. So, you need to enter everything at 100%.

Sometimes, it's easier to do the math yourself to ensure that your part and the other owner's part add up to the total.

[nicholas-corley]

Thanks for the response! I understand that if TurboTax does the math for me, I can put in everything at 100%.

I am asking if TurboTax does the math for me. In my example, TurboTax explicitly allows me to choose whether it will do the math but only for expenses. It says nothing about rental income. Please see the attached screen-grab of the UI that I am talking about and note that 1) it only says "expenses" and 2) there is nothing like this screen for "income" (that I have seen):

[DianeW777 · Accepted solution]

The income entered should not be adjusted by any percentage.  Be sure you are entering it in the income section.  All income is assumed to belong to the rental and is never divided by any percentage.  Any income entered is automatically assumed to be 100% rental income for a specific property.

                  

                    

@nicholas-corley 

[tspurrell94]

@DianeW777 or @Shannon B1 Same question as OP. I own 50% of a rental and this is the first time I'm doing the Schedule E. 

Since I need to enter that I own 50%, and will have Turbotax do the math for me, when I enter the income of $30k, will the system know that is the full income for the rental and my portion is only $15k? Because when I enter the full amount, it doesn't autocorrect for me owning 50% (after completion, it still shows $30k) and I don't want for my partner and I to both be taxed for $30k each when we should each only be taxed for $15k each totaling $30k.

Second question, when entering the "New Property" under the "Asset" segment, should the purchase price be the full price of the property (i.e., $420k) or only my half of the purchase price (i.e., $210k)?

Thanks!

Tim

[MarilynG1]

Yes, TurboTax will split Income and expenses for your rental when you indicate that you own a % in the Property Profile.  When entering the property asset, though, enter your 50% Cost Basis so depreciation can be tracked correctly.

Your Cost Basis would be the price you paid, plus any improvements made between purchase and starting as rental property.  Any improvements made after date placed in service can either be expensed (depending on cost/nature) or added as an Asset and depreciated in the Rental section. 

Remember when TurboTax asks 'was the property rented all year' they are referring to the date placed in service, so the answer would be usually be Yes.

Here's some info on Depreciation of Business Assets and Capital Improvements you may find useful.

@tspurrell94