@jed_and_brenda
The 50% (one-half) you acquired from your spouse is stepped up to $100,000 (FMV on the date of death). If 75% is allocated to the building, then the basis for depreciation of that one-half is $75,000.
Further, the depreciation deductions that were taken in prior years, for the one-half acquired from your spouse at death, are wiped out (i.e., depreciation starts again at the new basis for depreciation - $75,000).
The basis for your 50% (one-half) remains the same; $40,000 less depreciation allowed.
