My brother and I inherited a house from my cousin in 2008. Upon her death we had the property appraised and the appraisal came in at $295K. Due to the declining real estate market here in California we made the deciscion to rent the house. In 2012 we sold the property for $200k. My accountant put the cost basis for my half at $125K and it has been depreciated since we took ownership. Why would he use $125k and not the $147500 1/2 of what the property was appraised at?