JeffCPA
Level 4

On my schedule E for the rental property, my clients (husband and wife filing jointly) are 50% owners of this particular rental property.   That is how they have been treated for years on my schedule.  I enter 100% of all expenses, etc. and because they are listed as 50% owners the program automatically reduces their share of expenses by half.  

So, now, the rental property has been sold, and on the disposition worksheet, I am entering 100% of the sale prices and expenses of sale.  I expected that would be correct, and then the program would automatically reduce their share of that asset sale by half.   But the program is not doing that.   The sales price is $545,000, with about $43,000 of expenses of sale, and that entire gain of roughly $501,000 or so is showing up on their return.   

Am I entering something wrong.   Should I just manually reduce the asset price for the sale by half to reflect fact that they are only 50% owners.   Seems odd.  Thank you. 

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