Thank you. Next questions:
I inherited the rental and have continued renting it. When I entered the date of death as the "Stop" date, it looks like TT accelerated the depreciation on some of the assets. For example, a new furnace was installed August, 2022. August to December is 5 months. The total depreciation for that asset for 2022 taxes was $1950, so $390/mo for 5 months.
However, my father passed away on Feb 1 of 2023, but TT calculated the depreciation to be $1560, just for that one month. Comparing the $390/mo to the $1560 seems like something is wrong. My only guess is that it accelerated the depreciation somehow.
Questions:
1. Does the $1560 vs $390 make sense?
2. Now that I've inherited the property, how do I begin depreciating the asset myself on my own taxes, given that some of it has already been depreciated?
Complication: The property was in a trust with just myself and both my parents. I am filing 3 returns for this:
1. Father's return from 1/1/2023 until date of death
2. Date of death until property transferred to me - 1041 for those 3 months.
3. My own taxes after transferred from his trust to me.
More questions:
1. Given the trust complication, I'm now wondering if the "Stop" date is the date of death, or rather the date transferred to me?
2. How do I instruct TT to treat the depreciation for each of these 3 cases?
