Will reducing the cost basis significantly from that which has been used previously for calculating depreciation of the rental property be a flag for the IRS? Will older tax forms need to be amended if we now change the real estate cost basis? Will depreciation need to be recalculated going back to the date placed in service? We will seek CPA advice in the matter. Thanks for your reply. Much appreciated.
It would be great if during the TT interview, the question is asked, "Was the sale of this rental property to a family member?" If "Yes," then the software manages the appropriate reporting.
