PatriciaV
Expert Alumni

Investors & landlords

Since your spouse passed away in during the year, you can still file a married filing jointly tax return for that tax year. You do need to indicate in the Personal Info section that they passed away. 

 

Under Rental Properties, work through the property profile and check the box for "I stopped using this property as a rental in 2024." Answer any follow up questions. Basically, you are reporting that the property was converted to personal use. Because there was no legal change in title, the property remains on the joint return as part of the estate.

 

The accumulated depreciation will become a factor when the property sells. Your stepped-up basis for the inheritance must be adjusted for the depreciation taken as a Rental Property when you report the sale to determine if you have a gain or loss.

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