Thank you. It's not a complicated trust document. The house was in my mother's name, transferred to her personal trust and states it is inherited by me. It's a large FMV amount, but the current depreciation is only a few thousand dollars, as it's for two months on the building value only. I've done a "practice return" and the flow through to my K-1 is around $3K, which is fine.
When doing the practice, TT is asking if the property was disposed of. Of course, it was. If I enter the date it was transferred to me, it is asking for the amount of the sale price. There is no place to answer that the property was distributed without a sale. Do I enter "zero" for sale price? If I do, it generates a loss of over a million dollars. That tracks to my K-1, but perhaps that line is just administrative and doesn't get entered on my return. Do I enter the FMV at the time of transfer even though no money was exchanged? I guess that would calculate a depreciation recapture. I hope my question is clear... Thanks
