Follow up on the asset summary... so you leave the original asset summary alone - full basis, full depreciation (rental was fully depreciated), full land value etc... and then mark it as "sold" on the sale date or Date of Death of owner?
If this was 2017 taxes we were dealing with, you'd basically leave it alone. The step-up of 50% of the basis in 2017 would have basically "wiped out" 50% of the depreciation already taken prior to his passing. If the property was already fully depreciated prior to his passing, then you'd only be depreciating the stepped up basis, with depreciation starting on that stepped up basis in 2017.
We could have handled on this on the 2017 tax return - albiet with TTX it would require us to "go around our elbow to get to our thumb". But it could have been done. Unfortunately at this point, it's just not doable with TurboTax unless you are a tax professional yourself and know the ins and outs of the form 3115. The program provides practically no help for that form, because it can be used to "fix" so many things. That's why I recommend professional help for the 2020 taxes this year. (Mistakes made in the process of fixing a mistake, can be significantly more costly in the long run.)
Just remember, make sure the tax pro provides you with a complete printout of your 2020 tax returns that includes all calculation forms and worksheets. You will need them to "come back" to TurboTax for the 2021 taxes, if that's what you desire.
You should also provide the tax pro complete copies of your 2017 through 2019 tax returns and all the forms and worksheets with it, if possible. That way, they have no excuse for not fixing things right for you on both the federal and state return for 2020.
But overall, a majority of tax pros know what they're doing and will get things right the first time. It's the few "bad apples" out there you gotta watch for.
