This is likely a simpler situation than I am stating, just unfamiliar territory for me.
Husband individually owned rental house purchased in 2004 - Purchase price $50,000, (40,000 house, 10,000 land) has deprceciated about 27,000 since putting it in service.
Husband and wife married about 10 years ago and file a joint return. (non community property state)
Husband died in 2024 intestate, house is currently in probate but will likely transfer to wife in 2025 at conclusion of probate.
House is no longer being rented as of end of 2024.
Wife intends to sell house, value at time of death and currently is approximately $100,000. Assume that will be sale price.
I understand that wife would get stepped up basis as of date of death, but not sure how to record property no longer being rental property and also impact of any depreciation recapture, either at time of transfer to wife or at eventual sale.
What happens to the accumulated depreciation that husband was deducting before death?
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