Many thanks, tagteam! I was concerned because this approach just seemed too easy.
Related question: In August, we installed new carpet in the house and in November, we purchased a new refrigerator and range. If not for the Deed of Distribution, the full depreciation for these items would have been allocated solely to the trust, as follows: 80% bonus depreciation plus MACRS for 5-year property, using half-year convention since the cost of items purchased in November was less than 40% of the total for the year.
The Deed of Distribution was executed in between these purchases, so I'm thinking the allocation should instead be as follows: Carpet-only depreciation assigned to the trust and calculated as above, but appliances assigned to the beneficiary with 80% bonus depreciation plus MACRS for 5-year property, using mid-quarter convention for the 4th quarter. Am I on the right track here? Thanks again!
