Also, keep in mind you'll get a different step-up depending on whether or not you're in a community property state.  Here in VA (a non-CP state), assuming the building is owned 50/50 by H&W, I'd split the original basis/accumulated depr 50/50 (I'm assuming this is on a 1040 Sch E as a rental property?) and then put in the date of sale on one half of it.  Then, as IRonMaN said, create a new asset for the stepped-up inherited half of the building.  The "wife" half of the building continues to depreciate based on her basis, the "inherited" half starts over using her new basis.

Are we having fun yet?