Wife and husband own rental house (non-community property state). Husband passes and wife inherits his half interest. The inherited half gets a step-up in basis based on FMV. Does depreciation on the step-up amount begin on husband's date of death with a new 27.5 period or done another way?
@Charlie6 wrote:
Does depreciation on the step-up amount begin on husband's date of death with a new 27.5 period
Yes. This is what I recommend:
So this year will show THREE assets (for each prior asset). The first is the wife's half that will be continuing. The second is the husband's half that is being marked as 'disposed'. And the third is the 'new' step up portion. Next year will only show two assets (the 'disposed' one will disappear).
@BobKamman LOL....almost doused the monitor with my sip of wine 😂
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