Hi TurboTax community, been using the product for 13 years and unfortunately this year I am dealing with a whole can of worms due to a divorce in 2022. We filed as married joint for 2021 tax year, and now are filing as single in 2022 tax year. Here are my questions
1. In the Wages and Income Section, 2021's State tax refund is carried over from the 2021 returns. However that is the full figure from joint filing. Do we just split the figure in 1/2 for this year's filing?
2. In the Wages and Income Section, Capital Loss Carryover is requested from 2021. That is on a jointly owned investment account that we continue to jointly own for 2022. Do we just split the carryover amount in 1/2?
3. In the Wages and Income Section, Rental property section, there is data requested from 2021 for Assets/Depreciation. We have agreed to a 50/50 split in the rental income property and continue to jointly own it for 2022. Do we once again split the Total original Cost and prior depreciation figures in 1/2 to order to carry the right figures forward?
Thank you
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I'll answer your questions by your numbers:
I'll answer your questions by your numbers:
Thank you for the quick response Alicia. Do you happen to have the reference to the corresponding IRS rule? I was looking at publication 504 (their document on divorce) but I did not see any of these issues covered.
Regards.
Yes. There are information details about divorce and your tax return for your reference.
As long as you have agreed to how you will report your joint taxable items and jointly owned property, and I would suggest it be in writing for future use, you can make the split on each of your returns. Part of the answer does depend on what is written in the divorce decree. From the date of the decree forward you must follow what is written, and assumed decided then.
Hi, regarding the solution to ownership % of rental property, I have changed the ownership percentage to 50% per prior response. However, turbo tax arrives at the same depreciation expense amount as when first calculated with 100% ownership. Does this make sense? Seems odd to me that each of us would end up with 50% ownership and both of us would end up claiming the same annual depreciation expense as before when we were filing joint. Thanks.
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You do not need to split the rental details, you need to change the ownership % in the details about the rental.
TurboTax would split all of the expenses however, tt appears the asset entry assumes you already entered only your half of the asset cost. I would suggest splitting the cost of everything including the assets, then enter then in each of your returns. Splitting can become difficult when the property is rented all year (all days of the year). This will provide the desired results without working with the percentage.
Go back to the Property Profile or Property Info and change it to the 100% ownership and split the expenses.
Understood , should I also split the prior depreciation figure that is being carried forward from the 2021 joint return?
Yes. Depending on what you do with the property next year (2023) this may need to be addressed again when you prepare that tax return.
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