@Tzoto wrote:
a. when you say original basis, do you mean the purchase price + closing cost at purchase + any improvement done till the date of death? Should I exclude the cost of land?
b. when I set up a new asset, would turbo tax prompt me to enter depreciation? so that I can enter 50% "prior depreciation" for nr. 1 and nr. 2?
c. For nr. 3. can you please confirm that should be 50% of Fair Market Value?
My other question: Because I will need to amend the 2022 tax returns to fix all these, how do I divide income/expenses for 2022 among all the three new assets that I will create?
a) It is usually the purchase price plus closing costs. Improvements should have been depreciated separately. The program will ask for the total cost (building plus land), and it will also ask for the land cost.
b) Yes, it should ask you for prior depreciation. It might default to showing blank (so it might not be a 'required' field), but it should have a spot to enter it.
c) Yes.
You don't need to divide income and expenses. All of the assets for depreciation are under the same rental property. So you will still show ONE rental property, but it will have multiple assets for depreciation.
