For example, if the original cost is $200,000. It has been depreciated for a few years (say, depreciated $20,000 already). Now the Fair Market Value on the day of her death is $400,000. What should I do in Turbotax to step up the cost basis to get more depreciation? Should I simply change the original Cost Basis (i.e. $200 k) to the new step up'd cost basis of $300 k (i.e. 50% step up)? How about the amount that has already been depreciated in prior years (i.e. the $20,000)? Should I cut it in half (So the new depreciated amount will be $10,000) since my wife's part should be wiped off?
