My mother had a rental property at the time of her death in Aug 2020. Her tenant coincidently had already planned to move out 4 days later and the property was sold by her estate.
I need help please answering the TurboTax questions so that depreciation for 2020 is correctly reported (Jan to the date of her death), AND prior years' depreciation is not recaptured on this return as the property was taken out of use because it transferred to her estate.
The current calculation doesn’t look right and I’m not sure what I’m doing wrong:
On the “Tell Us More about this Rental” page, I selected the third option “The item was sold, retired, stolen…or is no longer being used in business for some other reason”, entered the date of death, and selected Yes, I’ve always used this item 100% for business.
On the “Confirm your Prior Depreciation” screen, Turbo Tax estimated the prior year’s depreciation, but I understand that it should not be recaptured on this return. I overrode the number and entered $0.
On the “Special Handling Required” page I chose Yes since saying No assumes the property has been sold.
The resulting depreciation that Turbo Tax says will be included on the return is approx 3x what it should be.
Any ideas how to correctly enter the info? Thank you!
