disposing of assets-deceased taxpayer

[janeabs1]

Do I need to dispose of assets on the asset entry worksheet on a taxpayer's final tax return on the date of death, with $0 sales price? The assets are going to the 2 sons. There is a Schedule F and a Schedule E. 

[sjrcpa]

They weren't sold for -0-.

You stop depreciation as of date of death.

Depending on what software you use, enter disposition date as date of death and leave the sales price blank.

[janeabs1]

Ok, that's what I was thinking. Correct...not $0 sales price; leave that blank. Thank you for your reply! 

[janeabs1]

Just to clarify, he is owing more when I enter this way, since there is recapture of depreciation. Upon research, I'm not seeing any information on this, so just verifying this is correct.

[sjrcpa]

No depreciation recapture.

Something is wrong with your input. I don't know what.

[janeabs1]

I didn't think there should be any recapture of depreciation. I'm just entering the date of death on the asset entry worksheets. 

[janeabs1]

I think we're good...it's just changing the amount that can be depreciated for the year, based on the date of death, rather than receiving a full year of depreciation. 

[sjrcpa]

That is correct.

[janeabs1]

Thank you for your help!

[sjrcpa]

You're welcome.