In this case Taxpayer (even while married) was and is the sole owner of the house. Spouse has a sole proprietorship and took a home office deduction including depreciation on that part of the house which was Spouse's home office. Taxpayer and Spouse filed jointly up to and including calendar 2017. Taxpayer and Spouse got a final decree of divorce in calendar 2018. Taxpayer had and has no ownership interest in Spouse's business. Sometime in the next few years Taxpayer is likely to sell the house.
Questions: 1) Was Spouse even allowed to take that depreciation in the first place given that Spouse had no ownership in the house? 1a) If not, what is supposed to happen with the open joint returns? I assume they should be amended, but what if Spouse (now ex-Spouse) refuses to cooperate?
2) What happens re: depreciation recapture when Taxpayer sells the house? Is Taxpayer stuck with the entire depreciation recapture and ex-Spouse gets off scot-free? Does the answer change at all if the depreciation shouldn't have been taken in the first place?
Rich Carreiro email@example.com