Basically, show the property and each asset as converted to personal use one day before it was transferred to the estate. Depreciation will stop on that date you specify/enter. Selecting "YES" on the special handling required screen does not ask for any sales information, and it does not recapture any depreciation.
Then, when you enter the property on the estate return, the cost basis for that property on the estate return will be the FMV of the property on the date of her passing. (That's the "step-up" in basis). If the property will continued to be a rental (I don't see why it would not, even if the tenants moved out 4 days after her passing) the in service date is the date it was transferred to the estate, which means there is no prior year's depreciation to deal with. All that prior year's depreciation just "evaporates" on the step-up in basis.
What you might want to do on the estate return, is just report the sale in the Sale of Business Property section, so you don't have to deal with any depreciation at all.
@Hal_Al I know I'm good on the final 1040 return. But for the 1041 return is that doable? I know just enough about the 1041 estate return to be downright dangerous.
