Where do I enter sale of a rental property which was stepped up when my husband died but I need to recapture the amount depreciated during the period it was rented?

[Coleen3 · Accepted solution]

There are two possible entry points for rental, depending if it was rented in 2018. Your basis will be 50% cost plus improvements plus 50% of FMV on the date of death. If you enter through the rental section, you will encounter 2 places to indicate the sale. See the screenshots below. You will also have a screen for depreciation. It will automatically be recaptured upon entering the sale information.

If you did not rent in 2018, see below.

Enter it in the income section.

• Less Common Business Situations
• Sale of Business Property