Hi, I inherited a rental home from my father's living trust and am also the successor trustee and executor.
What I understand:
- All income, expense, and depreciation before the date of death (July) is accounted for on my father's personal return under this TIN.
- All income, expense, and depreciation after the date I took ownership of the property (October) is accounted for on my personal return under my TIN. The stepped up cost basis for the property is the date of death FMV determine by appraisal.
- All income, expense, and depreciation between July and October is to be accounted for on a fiduciary return I will file for the trust under its own TIN. All income and costs will be distributed to me.
Questions regarding depreciation:
- Should the fiduciary return claim depreciation?
- If so, does the fiduciary return use the stepped up basis for depreciation? Or continue the depreciation that was used previously for the trust under my father's personal return?
Any info will help.
