Dawn - I am reading this old thread as it applies to me today and for amending some erroneous returns in the past. Our family forgot to get the stepped up basis for my mother when my father died on the rental properties they were joint owners on. Questions are:
1. Do you leave the original "asset" for the rental in the asset summary alone? You only enter in the sale price and date it sold when/if the asset is sold? If so, do you put the full sale price?
2. When you enter the New Asset for the rental property in the asset summary do you put the new basis in as the sum of 1/2 original basis + 1/2 FMV at DoD? (This is spouse situation like mentioned, so 50% stepped up basis). I also understand the service date will be DoD. When property is sold, do you just put in the full sale price and expenses?
I guess my question is mainly around whether or not you put in the full values for new asset instead of trying to make the old asset 1/2 of the value it was and the new asset 1/2 of the FMV and then put sale price in as 1/2 of price for each when listing sale. All the threads on TT on this topic seem to show different methods.
If I want to start a new asset with stepped up basis for rental property that a spouse gets a 1/2 stepped up basis based on FMV for, how do I do it? What do I do with the original asset? What do I do with the new asset? And what do I put in for the sale of the property for both listed assets for depreciation?
Appreciate your help if possible!
