100% rental expense for 50% owner

[AmazingTaxLady]

Hi,

I have a client that owns 50% of a rental. I've always entered the 100% numbers and have it set as 50% owner.

In 2022, she had a legal expense regarding the property that only she paid for, not the other owner. How do I enter this expense so that she gets 100% of the deduction?

Thanks!

[PATAX]

Can you change the percentage from 50% to 100% just for that legal fee? If not, and it keeps defaulting to 50%, then just double the amount, and then the correct 100% will flow through. For example if she paid $500 in legal fees and she is entitled to $500 deduction, but 50% keeps showing up, then just enter $1,000 and 50% of that is $500 which is the correct amount. Make sure the state is okay too

[abctax55]

I gross it up by the ownership percentage (ie, $ 100 up to 200 for the 50% haircut) & describe it as such.

[abctax55]

... my solution may not be 'pretty' but if you change the income & all the expenses to just her 50% so the presentation is 'pretty', don't forget the impact on depreciation.

This is my solution, too, when allocating some of my fee for the tax preparation.

[joshuabarksatlcs]

Be aware that the "pretty" solution may become "unpretty" IF 1099-Misc Rent for the property is reported under the SSN of the 50% client.

I stick with the unpretty solution and note it in my.