New client purchased her parent's home for $1 many years ago.  The parents remained in the home after the purchase but passed away a few years later.  Client ultimately rented the property and then sold it at the beginning of 2022.  Client never lived in the home.  Value of the home at date of death was $250,000.

There were no substantial improvements made to the home prior to it being rented.  Prior accountant entered $250,000 as the value of the home and depreciated it.  While rented, all repairs or improvements were expensed or depreciated.  Client never mentioned the $1 purchase.  What to do at this point?  This rental goes back ten years or so.  Thoughts please.