- The forward taxes that you paid are added to the basis of the home. Any other costs of buying and selling the property are also added to your basis.
- You are correct to use the date when the property was converted to a rental.
- When the property became a rental, the structure, but not the land depreciated. That is why the entry was there for the building minus the cost of the land.
- When you sell the house you are selling the land and the building so the land becomes part of your basis in the property.
Everything you have entered so far has been done correctly.
This is an article with steps on How to Record Sale of Rental Property.
