stepped up basis and estate return

Forum|Forum|4 years ago
October 15, 2021
2 replies
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Parent passed in May 2020, had fully depreciated rental prop and IRA in Revocable trust , prop and IRA was transferred to heir in Jan 2021, is a trust return needed for period of death to Dec 2020? If so would stepped up basis be applied in trust return and then new basis be passed to heir or when it is given to heir in 2021?

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Best answer by IRonMaN

If the trust received income for that period, yes a return would be necessary. And yes, the property would have a stepped up basis. As a side note, did the trust have a calendar year end or does it have a fiscal year end so you would have to only prepare a one and done return?

IRonMaNAnswer

Level 15

If the trust received income for that period, yes a return would be necessary. And yes, the property would have a stepped up basis. As a side note, did the trust have a calendar year end or does it have a fiscal year end so you would have to only prepare a one and done return?

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