50% of rental income

[taxbrewster]

I have a new client. Was looking over last years return. T/P has a rental property that splits with Mother. They are both on title and mortgage. Last years SCH E show the total numbers for the rental then in the LN 22 of SCH E has a "X 50.00" , which then splits the loss for the year 50/50...

How do I recreate this in ATX??

The only way I have found is in the input tab of sch e is taking the ownership % to 50% and also use 50% of business us on the asset entry form, therefore it shows the correct loss.

Is this the correct way to show this?

Or does ATX have a override or something that I am missing to divide the total numbers for the year, that illustates he is entitles to half the income, expense, and depreciation?

Thanks.

[taxbrewster]

Anyone have an luck with this? ATX support has been no help...

I am just wondering if taking 50% on the asset entry form (under business use) will mess anything up down the road.

I think it is the correct way because I don't think there is any other way.

Thanks again.

[Yardley CPA]

Anyone have an luck with this? ATX support has been no help...

I am just wondering if taking 50% on the asset entry form (under business use) will mess anything up down the road.

I think it is the correct way because I don't think there is any other way.

Thanks again.

I don't see how it could mess anything up if your client truly has 50% equity in the property. I believe by you inputting 50% it should properly calculate the income and expenses and reflect the correct amounts on Schedule E. I think that's the way to go.

[imjulier]

I've done it this way and haven't had any problems.

Julie

[taxbrewster]

Thanks guys, I thought it was the way to go, since we can not input and create calculations on the form.

excellent, try to have a good day.

[B. Jani]

I have client since last 18 years with 2 family house, live one and rented upstair apartment. Always manually did 50-50 of all deductions. Old fashion. Never tried other way.

[joanmcq]

Me too, never thought to limit the asset entry to 50%. Always just cut it in half before entering. Could limiting it mess with bonus depreciation? For the Sch E, you can indicate ownership is 50% & enter income & expenses at 100% & the program will split. I alway enter my rentals that I co-own already split (use a spreadsheet) because otherwise the auto expenses that I have solely (ex doesn't keep track so doesn't get any) for my car would be split since there isn't an option to pick and choose which expenses are at 50%.

[taxbrewster]

Yeah, that was my other thought. There are not any other expenses for this t/p, everything is split 50/50 (this time), but I thought, if he had some travel expenses that would automatically split them, when the program should not.

SO, I think I am going to redo the sch E, create a spreadsheet, because who knows next year, I will run into the same problem.