I agree that your answers are awsome. My case is similar, but a little different. My wife and I both owned rental property jointly in our Living Trust. My wife passed away in October, 2020. I had the rental property in California (a communuity property state) appraised as of the date of death. My accountant filed the IRS Form 706 and 1040 for 2020. I want to use TurboTax to file my 2021 taxes. Is the basis of the rental property used for 2021 taxes the same as Carl's case? Do I also enter the way I acquired the property in TurboTax as inherited, or perhaps split the amount as owned and inherited? Can I use the Schedule A of Form 706 to determine the new cost basis and begin depreciating the rental property over 27.5 years? Can you confirm that any improvements to the rental property made after the date of death will have the applicable useful life, not 27.5 years? One asset was a 2004 automobile that I had appraised, and I sold it in January 2021. I understand that I have to claim the small increase in value between October, 2020 and January, 2021 as 2021 income. How do I do this?
