Bonus depreciation for decedent

[pat]

I use lacerte and in preparing a 1040 for a decedent added a new farm equipt asset purchased just days before death. To stop depreciation on this and all farm assets I entered the date of death with no sales price for each.  Lacerte is not allowing bonus depreciation for the new asset which is being questioned by the estate's personal representative. Is this correct treatment? and if not, How do I properly enter it so that bonus will be correctly applied? TIA. 

[pat]

Since posting my question I have figured out that if I remove the disposition date from this asset the 40% bonus depreciation is applied. Now my questions are: is bonus allowed for the decedent since they died so soon after placing in service? And if so, at what amount do I carry the asset on the estate 1041? Or, can I just let the estate take the bonus and be done. 

[BobKamman]

What made you think you had to stop depreciation?

https://bradfordtaxinstitute.com/Content/Impact-of-Death-and-Retirement-on-the-179-Deduction.aspx 

[pat]

Ah yes, the unhelpful reply. What makes you think I didn’t? The decedent died in April. If I don’t enter a date depreciation is applied for the entire year. Besides this is bonus and Lacerte clearly provides instructions to enter the date of death without a sales price to properly calculate depreciation only for the time decedent was alive. Further, I am not a Bradford tax subscriber. 

[sjrcpa]

It's a short year for depreciation, and some other, purposes. Bonus depreciation is not affected by this. Regular depreciation is.

[pat]

Thank you for confirming that bonus is unaffected by the short year. However, that leaves me with the question about what value to enter this asset on the estate return. Bonus this year is 40% and I am unsure whether the full value of the asset should be entered again on the estate. Is only adding this asset to the estate a better available option?

[BobKamman]

Just another unhelpful reply from @sjrcpa .  Now we move on to unhelpful comments about, do you mean the estate income tax return?  And what makes you think it has to be done on a calendar-year basis?

[sjrcpa]

And, the basis of assets in the estate is their FMV on the date of death.

[pat]

Thank you @sjrcpa I appreciate your help.

As for you @BobKamman You don’t even try to be helpful. @sjrcpa answer was very good. Besides there is no depreciation on the 706 so of course all knowledgeable responders know that I am talking about the 1041. A first and final. Now go away. I am not impressed. 

[BobKamman]

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@pat wrote:

Thank you for confirming that bonus is unaffected by the short year. However, that leaves me with the question about what value to enter this asset on the estate return. Bonus this year is 40% and I am unsure whether the full value of the asset should be entered again on the estate. Is only adding this asset to the estate a better available option?

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Exactly where does this mention depreciation, rather than the valuation that would go on a 706?  A knowledgeable preparer would know that depreciation starts over for inherited property and inherited property is not eligible for "bonus this year" so why even mention it?

[pat]

You really are despicable. This entire website is setup for knowledgeable preparers to ask questions related to the work they are doing. You seem to take delight in attempting to make people sorry they post a question here. I am not sorry for posting my questions. Thank goodness for good folks like @sjrcpa who express their desire to be helpful by answering questions in a positive way. For you, perhaps you would enjoy truth social as a venue for your spite. You have offered nothing of value to this discussion and should leave it at once without any further derogatory comments.