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My client's spouse died mid-way through 2020; they owned many rental properties. Since California is a community property state, her attorney and I have agreed that the surviving spouse has 100% step-up on her inherited property, including the rentals, and we can re-start depreciation on all of them, at the full appraised value at date-of-death. The client has obtained all of these appraisals.
My question is how to do this in Lacerte. There would be depreciation at the old rates for part of the year, until DoD, and then new depreciation starting at DoD. Is there an easy way to do this? At least all of the improvements over the years don't have to be re-entered (there are 62 assets on the dep'n schedule)!
Best Answer Click here
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Input a sale date for all the old assets (Maybe learn that Ctrl + down arrow or Ctrl + up arrow will jump between assets at that entry) as the date of death, but do not input a sale price.
Enter a new asset (or probably two - land and improvement) with day of death for each of the properties. Hopefully the appraisal will give the the allocation of land and improvement.
Answers are easy. Questions are hard!
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Thanks, George.
And Ctrl-arrow is brilliant - I didn't know that!
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@jerry Check out https://proconnect.intuit.com/community/tax-return/help/keyboard-shortcuts-for-lacerte/00/96376
There are some really functional keyboard shortcuts. I really hate the mouse, but love the keyboard.
ENJOY!
Answers are easy. Questions are hard!
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Takes me back to 1982 and DOS 3.1!
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