@KrisD15 @Carl ,
I contracted "Do Personal Tax with Expert help" with turboTax. I have step up issue and was referred to this question.
I deed the rental property in CA with my parents. My dad passed in 2017 and my mom passed in 3/12/2022. I am filing my and my mom taxes for 2022.
#1) For the new depreciation basis, I put down 2/3 of the FMV. Is this correct? In the depreciation, I put down all 4 years depreciation value (rent began 2018). Does this mean I am recapturing old depreciation? Or I should put $0 for the depreciation and let the depreciation based on new basis start from ground zero which is based on @KrisD15 The accumulated depreciation on the rental property prior to the decedent's death is irrelevant.
#2) After adding the new basis according to what I said in #1), now I have two assets for the rental. Do I dispose the old asset or keep both of them? The old asset has original cost as the depreciation basis and all 4 years depreciation. The reason I asked because it seems that @KrisD15 suggested to dispose old asset, and @Carl suggested to keep old asset. Am I understanding correctly?
