@joepmo , assuming that you are using Windows TurboTax Home & Business ( that is my go to and can do the most complicated returns ). I am looking at it as a sale / disposition in 2025 -- and therefore 2026 filing.
(a) Under business tab select Sale of business property. This will then ask for details about the property. 1.Provide the Basis as current stepped up value ( since this was not community / marital property it will step up to FMV at the time of the decedent )
2. Provide the accumulated depreciation -- get this from the depreciation document included in 2023 worksheet and include the amount for 2024.
3. Provide the sales proceeds --- from HUD-1 should be helpful . What you are looking for are the sales Proceeds = Sales Price LESS all allowable sales expenses ( e.g. any repairs etc. for a sale, real-estate commission, transfer tax, title insurance etc. etc. ).
4. TT will then , through the rest of the screens compute the total capital gain. Note that out of this gain, that portion due to accumulated depreciation is treated as ordinary gain and then the rest is given capital gain ( and therefore capital tax rate ).
Does this help ?
Is there more I can do for you ?
