Rental income - decedent's final return

Forum|Forum|5 years ago
January 20, 2021
1 reply
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Taxpayer died 02/29/2020 and had two residential rental properties. Preparing the final 1040. How do you code rental fixed assets so only partial depreciation taken? Assets managed by estate for approximately 9 months and then were distributed to a beneficiary of estate.

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Best answer by IRonMaN

Show a retirement/sale date of 2/29/20 in the software but leave the sales price box empty.

IRonMaNAnswer

Level 15

Show a retirement/sale date of 2/29/20 in the software but leave the sales price box empty.

Slava Ukraini!

B

bdewoldtAuthor

Level 2

Thank you very much. The estate operated the rental property from date of death until it was distributed to a beneficiary 8 months later. I stepped up the basis of the asset on date of death (02/29/2020), reported rental activity on schedule E in the Estate 1041 for the months the estate operated residential rental property, and have removed it from service on the estate return by doing the same thing when distributed to beneficiary -- show a disposition date (11/02/2020) without a sales price. Seem logical?

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