My client passed away in September. The only asset in her trust was a 4-flat building. 

1. The building sold on Dec 27, 2023 for $725K, so I'm using $725K as the basis as well. Can I depreciate the property for the period Sept - Dec 2023? There are tenants in the building.
2. Because of closing costs, there will be a loss of approx. $50K. Would this be a Sect 1250 loss (ordinary)?
3. No estate tax return will be filed because this was her only asset when she died. 

All proceeds will be distributed from the trust bank accounts in early Feb 2024.

Any input would be appreciated.