Estate 1041 & rental property
I'm doing my first estate return in ages, and this one has a rental. So depreciation. Do I calculate depreciation at the same rate as the decedent's return, or does the step up in basis begin on the estate return? I'm probably overthinking this but this is the first estate I've done that's had anything other than a personal residence. And this one has probate in 3 states, so it's been taking a while to close.
Joan, it wasn't held in a trust prior to death, was it? That may change my answer, but I believe if the property was titled in the individual name, then you would use the stepped up basis and depreciation starts over in the estate, covered by IRC 1014(a), I think. If the deceased was the sole owner, any depreciation taken by the estate before death is ignored at the time of disposition, so if the estate continues to rent and depreciate, the basis at disposition would be the FMV at DOD (or the a
