I sold a rental property this year, 2023. The house was previously owned by me and my wife. She passed away in July, 2021. Using an affadavit of heirship became the sole owner of the property. I have been told by a CPA that it is possible to adjust the basis of property value to take into account her passing. How can I go about doing this? And what documentation do I need to substantiate the new tax basis. For example, the house was bought in 1972 for approx $16000. It sold this year for $247000. How do I go about adjusting the basis to its value at the time of my wife's passing and my sole ownership?
