Step up basis

[gman]

Taxpayer dies in June. Spouse continues farm business with farm assets recieving stepped up basis. Does the new basis apply to the entire year, or would depreciation be calculated up until date of death?

[taxea]

Stepped up basis would be "in service" at date of death. Might I suggest that you create a new depreciation for this rather than try to adjust the present depreciation. taxea

[Jiggers]

Two Schedule F's and Two 4562's

Taxpayer dies in June. Spouse continues farm business with farm assets recieving stepped up basis. Does the new basis apply to the entire year, or would depreciation be calculated up until date of death?

You need two Schedule F's and two 4562's.

One for the taxpayer showing all income, expenses, and depreciation up to date of death.

The second one for the spouse showing all income, expenses, and depreciation after the date of death.