Your demolition coat and the remaining depreciation gets added to the cost of the land.
Assuming you did not sell the property in 2020, work through the rental property and at the beginning (2 or three screens in) indicate that the property was converted to personal use. Then continue working through it, entering any rental income/expenses if applicable.
In the assets/depreciation section work through the asset and on the first screen write down the cost, cost of land, and prior depreciation already taken, then continue.
When asked "Did you stop using this asset in 2020?" click YES.
Your date of sale or disposition will be the date you converted the property to personal use.
For "Special Handling Required?" click YES.
Write down the current year's depreciation and that gets added to the prior years depreciation you wrote down earlier. The total amount of depreciation taken, along with your demolition costs will be added to the cost of the land.
Keep all the information you wrote down. You will not deal with this any further until the tax year you sell the land.
