You can enter it just once.
Pease go to
Business
Rental Properties and Royalties
Enter the property with the stepped-up basis for land and building.
If you know the proper amount to list as the basis, there is no need to select that it was inherited. If you would prefer the program calculates the basis, you can go through that interview.
Use the start dates of ownership and business use as the date it was inherited.
Report that it was sold and the sales date.
The 2021 depreciation will be calculated.
Continue through with any income and expenses.
Click Done.
Return to the Rental Section and continue through the interview until you get to the Summary screen
Click Edit next to the property
Scroll down to Sale of Property/ Depreciation and click Start or Update
Select YES to go to summary
Click Edit next to the property
Continue through the interview reporting the basis of property and land, the prior years depreciation (your calculation) and the sale proceeds.
The program will add the 2021 depreciation if applicable.
Depreciation recapture will be listed on Schedule 1 and capital gain or loss on Schedule D.
TurboTax will handle the land sale by the numbers you enter. Either gain or loss depending on how you allocate the sales proceeds to the land portion of the sale.
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