No. The basis of the property is simply your mother's original basis (1/2 of the cost plus improvements) plus 50% FMV at time of spouse passing. That is the number to enter for the basis of the property. Then you are asked to enter the value of the land- not the basis of the land.
The program subtracts the difference and depreciates on that amount. If the house is going to stay a rental until your mom passes, it is rather irrelevant as you would inherit at fair market value. However, if she sells the house, then the depreciation will reduce basis and increase gain.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
