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My client has owned rental property with a partner for years. The property is in her name so the 1099S comes in her name. I have always entered all income and expenses on schedule E as 100% and then select under Other information: 50% ownership, which halves the profits or losses.
when I go to dispose of the property and enter the gross sales price (at 100%), the software gives me half of the basis, which results in a huge gain. If I uncheck the 50% ownership then I get the full basis and the gain comes out right. But then of course the schedule E shows the whole profit/loss instead of 50%.
I would like to keep the schedule E as is: report 100% of income and expenses and let the software halve the profit/loss, but on Form 4797 I would like to show the whole sales price and have the software show the whole basis.
Is there something I am not checking, or some override that I have to use to achieve that?
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