Allowed or allowable

[Kram BergGold]

I just picked up a trust which held one piece of real estate which was sold in 2006. It appears that the stepped up basis of the house was never depreciated. I know I can use Form 3115 to reclaim all the unclaimed depreciation. However in this case I would prefer to just ignore depreciation. Has anything changed with the rules on allowed or allowable? Someone told me it had, and that you could just ignore depreciation and use the basis as is against the sale income.

[Bill Tubbs]

No change...

as far as I know. I know there's a Rev Proc that allows depreciation to be claimed up thru the year it's sold. But as far as I know, need to use Form 3115 to claim the depreciation, and then deal with the sale using the adjusted basis.

Bill