How do I enter step up basis for individual return on rental with death of spouse (not community property)

[Crandall58]

Original basis $48151

Cannot get appraisal on date of death 9/2023, using replacement cost $201387 plus assessed land cost - $55,700 = $257087.

Need to amend 2023 for Step up basis

Do I adjust previous assets to 50% and continue with depreciation with original dates?  Add a new asset with home on date of death as 50%- $100694 and Land 50% - $27850 for 27.5 life years.

On 5/2024, house burned down, received from insurance $524000, sold land $120000 and paid private insurance adjuster $43,000

How to I handle a fire since it now is -0- basis plus insurance costs less private adjuster? Or do I use the basis of assets on tax return?

Use land cost of $27850 as basis and sold for $120000.  This was a separate sale.

This is a non-community property (CT) and individual tax return (1040)

CC 

[George4Tacks]

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@Crandall58 wrote:

Original basis $48151

Cannot get appraisal on date of death 9/2023, using replacement cost $201387 plus assessed land cost - $55,700 = $257087.

Need to amend 2023 for Step up basis

Do I adjust previous assets to 50% and continue with depreciation with original dates?  YES Add a new asset with home on date of death as 50%- $100694 and Land 50% - $27850 for 27.5 life years. YES

On 5/2024, house burned down, received from insurance $524000, sold land $120000 and paid private insurance adjuster $43,000

How to I handle a fire since it now is -0- basis plus insurance costs less private adjuster? ?? this query is not clear to me. Or do I use the basis of assets on tax return? Yes  Consider IRC 1033 https://www.law.cornell.edu/uscode/text/26/1033

Use land cost of $27850 as basis and sold for $120000.  This was a separate sale. YES

This is a non-community property (CT) and individual tax return (1040)

CC 

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[Skylane]

If DOD appraisal not available, you may be able to get local realtor to provide report with comparable sales within a few months of DOD. Use the average sale value . The RE tax bill assigns a value to land and improvement that you can use to determine % to assign for improvement 

[Crandall58]

Original House back in 8/1974 was fully depreciated cost basis $6,130 as well as other improvements along the years in amount of $51,539.  Step up basis on date of death - 9/25/2023 is $149776.80 (50%). 

Surviving spouse would get total of 50% ($6,130+$51,539) $28834.50 plus $149,776.80 less 50% depreciation taken to continue for remaining years prorated over each asset. 

As well as new asset, house - $149,776.80 for 27.5 years

Question, what happens to remaining assets for rental such as snow blower and other equipment purchased for purpose of the rental?  Does surviving spouse get 50% of original cost plus step up of cost basis and 50% of deceased spouse original cost less 50% depreciation taken for remaining years?

I have been reading so many posts, and it seems everyone has different ways to handle step up of rental assets.

CC

[Skylane]

Real estate, equities, etc. have a tendency to appreciate over time....  snowblowers don't  ...  you can use the remaining depreciation but that's about it.