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New client to me. Owns 47% of a residential rental property. All expenses recalculated using the 47% except for the depreciation. The schedule E worksheet does not all me to allocate depreciation and therefore by default this client is showing 100% of the depreciation. Does anyone know a fix around for this? Thanks in advance!
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Go to the Asset Entry Worksheet and do either (a) enter 47% as the business percentage, or (b) change the Basis to 47% of the total cost (the Basis of your client).
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thanks Bill.
I did try using the business percentage but it came back incorrect. (I think because its below 50%.
I will reduce basis as a fix.
This is sort of crazy that they don't allow application of the ownership % on Schedule E.
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Not any crazier than thinking all owners have the same basis. Your guy could have bought the 47% from a previous co-owner, or inherited it from someone who left it to him along with stepped-up basis.
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Good point! In this case the overall basis is the same for all parties.