You set up your Cost Basis correctly for your Rental Property, using your Purchase Price, so you don't need to change it. The FMV of a property can be very different than what you paid for it, and Depreciation is based on what you paid for the property.
You can use your current Assessment Statement to change the % of Cost and Purchase Price attributed to Land, if it was out of proportion initially (screenshot).
Follow the steps in the FAQ below to report the sale in Property Profile and Assets/Depreciation sections.
File a Non-Resident New York return to report the Capital Gain/Loss, as the property is located there. Prepare this state return before your resident Colorado return.
You also report the Capital Gain/Loss on your Resident Colorado return, but will get credit for any tax you pay New York on that income, so you won't be double-taxed.
Here's how to enter a Sale of Rental Property in TurboTax:
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