Great -thanks for the information. Regarding depreciation, when I enter the cost basis on the 4562 worksheet it does calculate deprecation for the short 3 month period. I also entered the Dec sale date (and proceeds), so the software "knows" I sold it within the same year. So, am I not allowed to claim depreciation? I know that it really wont' matter any because it's a Sect 1231 loss.

Could I just apply for an FEIN for an estate (even though there really isn't an estate) and then file the 1041 using the estate FEIN and make the Section 645 election on the 1041? Would that scenario allow me to file a 1041 on a FY basis?