I am trying to follow @Carl instructions to the original poster as I have a very similar situation. The portion of the rental property that I did not own was given to me in a quit claim deed by my dying parent in January 2022. I have allocated income and expenses prior to that exchange to the pre-existing rental business, and recorded the cost and depreciation values to calculate my new basis.
My question is how to answer turbotax questions about how I acquired the property. The property was my residence in the past. I did purchase part of the property before using it as residence and later converting it to a rental. I also acquired the remaining portion of ownership as a quit claim deed from a parent to a child. So should I answer yes to "did you purchase the property?" If no, how should I answer the question "how did you acquire the property?"
Thank you
