Thank you Amy! My follow up question to your post is regarding the depreciation. In our situation, the house was fully depreciated even before my Father passed away. I thought the only depreciation that had to be recaptured was the new depreciation taken from DOD to the Date of sale on the new basis. Lots of other posts in Turbo Tax Forum seemed to suggest that the prior depreciation is irrelevant?! Originally I thought it all had to be recaptured until I read up on the stepped up basis. In your example, you are saying that all prior depreciation of $30k for the 10 years until sale has to be recaptured. Is that correct? If everything else is done by 1/2, why not only 1/2 of the prior depreciation? So I guess my question now is how much of the depreciation is recaptured, and will Turbo Tax calculate it correctly in the asset summary when I fill it out with old and new asset? I'm still unclear on exactly how to change the assets in the asset summary because I tried amending the original to 1/2 and adding the new to 1/2 FMV and letting it calculate the depreciation, which I checked, and it seemed the tax was way off what it should have been or perhaps was counting/calculating it twice as 2 sales. Still need help on that end of it... and if you just report the sale on both assets or just new?!
