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

[Executor]

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"? 

[TaxGuyBill · Accepted solution]

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.