The Grantor Trust has an EIN and needs to file Form 1041 per IRS instructions. The CPA actually actually filed the blank Form 1041 with an attached statement to the Grantor and a Schedule E with NO depreciation number, yet on the Statement, it states to report all income and depreciation on the Grantor's individual income tax return.  This is what is confusing me!  Do I include the depreciation on the Schedule E or not (on the Grantor's personal tax return)?

A little Background: the Grantor's husband created a Rev Trust to hold the Rental property immediately before he passed away.  After he passed away, the rental property received 100% step up basis (as I was told).  The Grantor, surviving wife, somehow now became the Grantor and Trustee, and now needs to file Form 1041 for the Trust (as well as report the rental on her individual tax return just like before the Rental was transferred to the Rev Trust).  I guess the whole point of the Trust was to get the step up basis and increase the depreciation because the property was completely depreciated prior.  Not sure. 

Please help with this question if you can.  I am not sure what to do with the stepped up depreciation number, include it or not on the Grantor's individual tax return Schedule E?

Thanks so much!

SW