1. Yes, the cost basis for the rental property would be the FMV on the date of death, exclusive of the land value.
2. Yes, improvements made before the property went into service are separate rental assets for depreciation. Be sure you use the date you offered the property for rent as the date the improvements were placed in service (start date).
3. Yes, any expenses you incurred before you listed the property increase the basis of the property and should be entered as separate Rental Assets, subject to depreciation. Use the same start date for all rental assets.
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