My customers have been two elderly sisters. They have lived together in a home the jointly own.
They also jointly own (50/50) a single family rental house. Have been filing an "E" for each.
The older sister has recently died - leaving her 1/2 of the rental house to her sister.
As I understand it, filing the deceased's final 1040 return will include the rental's regular depreciation on her "E" up to her date of death.
My question is how to handle depreciation on the inherited side (i.e. the step up) of the rental for the surviving sister.
Will the house depreciation be the survivor's regular 1/2 + a new starting point and amount of the inherited 1/2, based on FMV at death ?
Thanks for comments.
They also jointly own (50/50) a single family rental house. Have been filing an "E" for each.
The older sister has recently died - leaving her 1/2 of the rental house to her sister.
As I understand it, filing the deceased's final 1040 return will include the rental's regular depreciation on her "E" up to her date of death.
My question is how to handle depreciation on the inherited side (i.e. the step up) of the rental for the surviving sister.
Will the house depreciation be the survivor's regular 1/2 + a new starting point and amount of the inherited 1/2, based on FMV at death ?
Thanks for comments.
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