The answers to your questions follow in the order you printed them.
- Yes it matters so that you know the difference and can track each portion. You can use something simple like 'Inherited Portion".
- Yes, you will depreciate the new asset over 27.5 years because it is still rental property and the rules haven't changed.
- Technically it begins on the day after death. The partnership will end on the date of death.
- I suggest you contact the California (CA) Franchise Board to see if you can get clear instruction about the annual tax since two returns must be filed. Taxpayers with general questions can call (800) 852-5711 or visit our website at ftb.ca.gov.
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