@teachwithgames_com wrote:
I just looked at the PDF and there is has always been a schedule E. That is good, correct?
Yes, because you do not have to file a 1065 for the property as a result of the Rev. Proc. I cited earlier (it appears that this was treated as disregarded entity by virtue of filing on Schedule E).
Also, the entire property (both your mother's undivided one-half and your father's one-half) receives a stepped up basis because your parents held the property as community property in a community property state.
