I can't seem to get a straight answer from anyone in TT live help or experts in forum here. How do I enter the sale of a rental property that has the original basis/asset and the stepped up basis asset in the asset summary of the rental? There is a stepped up basis due to death of spouse previously, so there is the original asset in the asset summary for the rental and a "new" asset with the stepped up basis of 1/2 original basis + 1/2 FMV on Date of Death. State of Ohio here, not a community property state.
1. Do you leave the original "asset" for the rental in the asset summary alone by leaving it at full value/sale price etc as originally entered? Do you put the full sale price at date of sale in when declaring the rental as sold? It will recapture all the depreciation though instead of 1/2 of depreciation which I'm not sure is correct if doing it this way since spouse should only have to recapture 1/2 of the depreciation taken from original basis.
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, or do you also subtract out 1/2 of depreciation taken from original/previous basis from the sum of those two values? I also understand the service date will be DoD. When property is sold, do you just put in the full sale price? It will automatically calculate the depreciation taken from DoD to date of sale and recapture accordingly.
Another question is around whether or not you put in the full values for the assets instead of trying to make the old original basis 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 in TT on this topic seem to show different methods. Just looking for CLEAR instructions on how to enter the sale in for a rental that has the original and stepped up basis assets in the asset summary.
Appreciate any help if possible!
