Get your taxes done using TurboTax
My suggestion is to say the property was converted to 100% personal use (Special Handling Required? screen), answer Yes.
Be sure you have the cost basis, rental property building, and land if applicable. as well as the amount of depreciation used in 2021. TurboTax will show you the amount. Next you will enter the sale separately outside of the rental activity section. Inherited property is always considered held long term.
Once you have compiled all the data, including the total for all depreciation used on your tax returns while you owned it as a rental and you are ready to begin the sale entry.
- Entry in TurboTax:
- To sell each rental property: Less Common Business Situations > Sale of Business Property >Start or Revisit > Select Sales of business or rental property..... Enter your sale
- See the image below for assistance.
Please update the issue if you need further clarification. This will provide the long term treatment you should receive as inherited property.
