inherited Rental

[dorou]

My wife and her sister inherited a rental property with a step up in basis at the time of death.  After a couple year court battle my wife Quit claim deeded the property to her sister for $0 as part of the broader settlement.  I recoreded 50% of the rental income for 2022 but my wife no longer owns the property.  How do I record that we no longer have the property and remove the property from taxes.  The property has since been sold by sister.

[Anonymous_]

Did you indicate the property was disposed of in 2022?

[dorou]

I wasn't Quit Claimed untill 2023 and she didn't recieve any rental income for 2023 either.

[Anonymous_]

Then you need to dispose of the property for whatever your wife received in return ("value").