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0bds
Level 1

How to report sale of rental property that was partially inherited

My sister and I jointly owned rental property. She died in 2018, and I inherited her half. I then sold the property. How do I report this, since the basis for each of the two halves is different, and recapture of depreciation only applies to the half I already owned?  Do I simply enter this as two separate transactions, or do I add the two bases together, and report only the depreciation recapture from my half, and report it as a single transaction?

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Accepted Solutions
DDollar
Expert Alumni

How to report sale of rental property that was partially inherited

Either method would be acceptable.  I would enter it as two separate transactions.

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1 Reply
DDollar
Expert Alumni

How to report sale of rental property that was partially inherited

Either method would be acceptable.  I would enter it as two separate transactions.

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