Thanks. @pk
Based on your last reply. I updated the 3 assets for the rental as below:
ased on @pk and @tagteam, will assets new value be changed?
At H passed, FMV= $600. 3 assets will be:
Asset #1) H share, 1/3 of the original tax basis and his prior depreciation discard.
Asset #2) W share gets $400 step up which is 2/3 step up of FMV $600 and her previous depreciation continue.
Asset #3) C share original tax basis $100 and previous depreciation stay the same
At W passed, FMV=$800, 3 new assets are:
Asset #1) W share $400 and prior depreciation discard
Asset #2) C gets $533 step up which is 2/3 FMV $800 and depreciation starts $0. Is this correct??
Asset #3) C's original $100 and prior depreciation
Thanks
