My wife died as a result for a rental property asset should I enter the stepped up bases cost from her date of death as the amount paid for it to calculate depreciation?

[user825753]

After the death of my wife I converted my home to rental property.  In the Turbo Tax section Tell Us About This Rental Asset I must enter the COST: The amount you paid for it.  Also Date Purchased or Acquired.  I originally paid $320K in 1994 when I purchased the property.  I am allowed a step up in basis to the current market analysis on the date of my wife’s death 3/28/2012. Which is $600K.

My question is can I enter the stepped up bases cost $600K and a Date purchased 3/28/2012? 

[Ashby · Accepted solution]

You can step up her half of the basis. So, her $160K was $300k at the time of death. Yours was still $160k. The basis would be $460k and date purchased/put in service would be 3/28/2012.

[user825753]

In California a community property state can you take a full 100% step up in basis?

[user825753]

In California a community property state can you take a full 100% step up in basis?