Let's assume this is the first year someone is using Turbo Tax Home and Business after years of doing taxes on paper. The person has a rental property that was fully depreciated that got a stepped up basis after the death of a spouse 5 years ago. Now, the surviving spouse sells the house. What is the correct way to enter the Original Asset and New Asset with Stepped Up Basis for sale in the Rental section of Turbo Tax Home and Business (desktop version). What is the correct way to enter it all in for the first time in Turbo Tax in the rental asset section such that the program correctly calculates the gains and recaptures 1/2 of the full depreciation of the original asset and the depreciation taken on the new asset the last 5 years?
Also, how is land cost handled when entering these assets?
I understand exactly what the gain and depreciation recapture should be here. The question is simply how to enter it properly in the software so that it calculates correctly assuming one had never used turbo tax previously.
