Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Executor
Returning Member

Any tax on capital gains and depreciation on rental property at death

deceased owned a residential rental property for about 10 years which passes to trust at market value as the cost basis on date of death.

Does the deceased representative have to pay capital gains and depreciation recapture on the final 1040 using the fair market value as the sales price or does it pass "tax free"? 

1 Best answer

Accepted Solutions
TaxGuyBill
Level 9

Any tax on capital gains and depreciation on rental property at death

It passes tax-free.  Do not treat it as sold.

However, if you are using TurboTax, you need to go into the "asset" and indicate it was converted to personal use (on the date of death).  That will stop the depreciation at the proper time.

View solution in original post

1 Reply
TaxGuyBill
Level 9

Any tax on capital gains and depreciation on rental property at death

It passes tax-free.  Do not treat it as sold.

However, if you are using TurboTax, you need to go into the "asset" and indicate it was converted to personal use (on the date of death).  That will stop the depreciation at the proper time.

Dynamic AdsDynamic Ads
Privacy Settings
v