Question for Expert DavidD66 or Others
Re: 2/22/22 response regarding stepped up basis & new depreciation for rental property after a spouse dies in community property state
I understand the steps in your post to retire the original asset as of the date of death and then set up a new asset with the new stepped-up basis value for the building. If this is done will the Schedule E show two properties with the same physical address for the first year (i.e. the year of death)? Will this trigger a rejection or audit by the IRS? Is there somewhere in Turbo Tax where a note can be added before filing electronically?
