ADMINISTRATOR OF TRUST THAT FILES FORM 1041 CONTINUED RENTAL PROPERTY OPERATION
AFTER DEATH OF ORIGINAL OWNER TO MID-YEAR THIS YEAR. STEPPED-UP BASIS WAS USED FOR
DEPRECIATION ON 1041. THIS YEAR THE TRUST WAS CLOSED AND THE PROPERTY WAS DISTRIBUTED
TO THE HEIR. FORM 706 WAS NOT REQUIRED. IF PROPERTY'S STEPPED UP BASIS WAS $500,000
(EXCLUDING LAND) AND ACCUMULATED DEPRECIATION WAS $16,666 AT DATE OF DISTRIBUTION, ,
DOES THE HEIR CONTINUE THE DEPRECIATION USING BOTH THE STEPPED-UP BASIS AND THE
ACCUMULATED DEPRECIATION AND IS THE DISTRIBUTION DATE THE ACQUISITION DATE TO THE
HEIR. KNOW AN HEIR IS SUPPOSE TO RECEIVE THE STEPPED-UP BASIS UPON DECEDENT'S DEATH,
BUT IF PREVIOUSLY DEPRECIATED I THE TRUST, HOW DOES THAT WORK?