Client passed away in 2021. Multi Family property was being depreciated, and was sold shortly after.  Where (what form) and how do I report the step-up on basis on the sale? I can report it on form 4797, and this adjusted basis would take into account the gain that will be absorbed with the step-up.  I did see one discussion that said to adjust the basis to account for the step-up. I would then want to attach an explanation so as to notify the taxing authorities why the basis/depreciation about changed.

Or do you have another way to handle it? TIA