Hi James,
Thanks for your reply. Yes, we have been reporting it as rental income since June 2020 and depreciating and there are no passive rental losses.
The more I look at this, I don't see why I can't just record the sale as being $113K which is what she paid me. We estimated the FMV from like properties and Zillow. We did not obtain an appraisal because it was just a year after we purchased it. I don't have any expenses to report for the sales information.
