My spouse and I were joint owners of our rental house here in Iowa. In the publication 551 example it appears that my basis on her date of death would be: My half of the interest in the house, plus her half of the FMV, minus 1/2 of the depreciation before her death.
To enter the new basis in Turbotax do I take the original house asset out of service and enter a new house asset starting with the date of death with the new calculated basis value or is a new house asset created with the 1/2 of FMV from her and keeping the old asset? What is done with improvements such as the new roof and driveway?
