Re-basing a rental house

[dennis_b]

I had a rental house for many years that I sold in 2022. The rent I charged has been on the low end, so I've ended up taking some losses each year, which have accrued over the years. My wife passed away in 2020 and I had the house reappraised, but I did not know to retire the original asset in 2020 and put a "new" rental house asset into place at the new appriased base value. Now, in 2022, I'm trying to figure out how to do this best. My accrued losses through 2020 should have been wiped clean, and the losses in 2021 and 2022 would apply against the sale, but how do I enter this correctly in Turbotax? Should I go back to my 2020 and 2021 files and update them, or is there a way to enter this all in the 2022 tax return?

[Anonymous_ · Accepted solution]

I am sorry for your loss.

With respect to how this should have been handled in the 2020 tax year, read the post by @AmeliesUncle in the thread below (perhaps he will also comment here).

Solved: My wife died in 2022. In Turbotax, how can I Step Up the cost base of our rental property to...

You can probably rectify any foregone depreciation deductions on the one-half you acquired from your wife by filing Form 3115 (but that form will most likely require professional guidance).

[dennis_b]

Thanks, I actually had seen that post too. Sounds like I'll be seeking assistance on rectifying the reporting for this.