The Prior Depreciation amount would be calculated from the date you started renting the property.
You will just use your stepped up basis of 2002 (FMV of property on date of inheritance) and this new basis will be used for depreciation.
The basis of property inherited from a decedent is generally one of the following:
- The fair market value (FMV) of the property on the date of the decedent's death.
- The FMV of the property on the alternate valuation date if the executor of the estate chooses to use the alternate valuation.
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