Question

Have second home that was an inheritance. Have used as rental for several years. Rented out January to August in 2018 then sold. How calculate cost and depreciation?

Forum|Forum|7 years ago
June 1, 2019
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TurboTax Premier Windows

Your cost basis in the home is the value on the date of death of whomever you inherited the property from, plus any improvements you made to the property, less any depreciation taken. If you have not been depreciating the house while it's been a rental, you may want to look in to filing amended tax returns for those years, as your cost basis is reduced not by the amount of depreciation you took, but the depreciation you were eligible to take. There is no depreciation expense in the year the house is sold.

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