When a rental property that was converted from personal use is sold at a gain, the original price of the property can be used to determine the basis for entry, along with the expenses of the sale, At the time of conversion, the lower of the FMV or original price has to be used for depreciation purposes. When the sale of the property is recorded for form 4797 and the original price is entered, Turbo Tax calculates the prior depreciation using the original price, but this number can be overridden. The problem I am having is that Turbo Tax calculates the current year depreciation using the original price. But this produces too much depreciation for the current year, since the depreciation should be calculated using the FMV that was originally used. Where it was easy to override the total prior depreciation, how/where do you override the current year 2021 depreciation?
