Thanks everyone. I'm getting closer and believe @Carl and @ColeenD3 arrived at the same answer, just a couple of different ways.
Please confirm my understanding holistically. My new cost basis will be $140K. So, if I sold the property for $210K, my capital gain will be $70K which will be subject to capital gain tax rules. I would have to pay depreciation recapture for the amount already depreciated which is $60K.
To accomplish this in Turbo Tax, I could add another asset for $60K which represents land and building. Using the same ratio originally done (75%), that $60K will be divided into $45K for the building and $15K for the land. I can depreciate the $45K until the property is sold.
Can you confirm my understanding?
