Good afternoon,

Thank you in advance for your input.  I have a client who jointly owned rental properties with her spouse.  Spouse passes away during 2023.  Properties have been fully depreciated.  Surviving spouse continues to lease the properties.

Does surviving spouse get to depreciate the stepped-up basis in the deceased 50% of the property?

For example, if the property appraises at 100,000 at date of death, 50% of that value is $50,000.

Does surviving spouse get to depreciate the $50,000?