My mother owned a small commercial property with a triple net lease, so the only expense is depreciation. She had a revocable living trust which became irrevocable when she passed away 5/1/23. For 2023, the lessee paid the rent to her as an individual for Jan-Apr and to the trust for May-Dec, so I have one 1099-MISC for each. We listed the property for sale in December, and it hasn't yet sold.
My question is with regards to the depreciation for 2023. It is only $965 for the whole year because the only building on the property is a small drive-thru ATM. I'm guessing that I can't just override the depreciation amount in TT to reflect the Jan-Apr amount for the 1040 and then manually enter the May-Dec amount on the 1041, correct? Do I have to complete the asset disposition section on the 1040 and use the remaining basis as the sales price, then set the asset up with that carryover basis? Do I also carry over the remaining useful life to the trust so that depreciation continues at $965 per year?
Thank you for any insight you can provide.
