How do I reflect that a rental property was used for 100% of the time until the death of the owner? The property was sold 3 months later as part of the Estate.

[maf17]

My Mom died in Aug with a rental unit. Her tenant moved out in Aug as planned. The unit was sold in Nov as part of her Estate.  I need to report that the unit was rented for 100% of the time time in 2020 until her death at the end of Aug.  TT is naturally asking for details about the sale, but that needs to be reported on her Estate filing, not her personal filing.  I'd appreciate advice in how to enter this correctly.   Thank you

[ColeenD3]

Don't include anything about the sale, since it will not be on her personal return. Enter all the rental information as you normally would. Enter the number of days it was actually rented and that it was 100% business use. It was not converted to personal use. Just think of it as being vacant  without an available tenant after her death. You can only take expenses for the time it was available to be rented, not any time it was vacated for the sale.

Keep a copy of any depreciation, so you can add it to the sale information.

[maf17]

Thank you very much. 

Regarding your comment about including the depreciation info with the sale information, how does that relate to the  Estate recognizing the stepped up basis to the DoD appraisal? 

[ColeenD3]

That is on the side of the inheritor. The estate can't have stepped up basis. If someone inherits a house and then sells it, they get the benefit.

[maf17]

Thank you very much.  

I was named the sole beneficiary in the will and am also the executor.

I sold the rental property and the proceeds are in an estate account since the probate case is still open.  (haven't yet met the 6-month minimum) 

Even though the funds are in the estate account, does the sale of the inherited property get reported on my personal taxes this year?   If so, will the prior depreciation my mother reported on the property factor in, or will the tax owed be based on the difference between the proceeds (sale price minus realtor fees, etc) and the DoD valuation? 

Thnak you again

[ColeenD3]

This is not your house. The estate sold the house and received the payment. You will inherit cash.

Please see this LINK for more information.

[maf17]

Thank you. 

I see I made a costly mistake by not first transferring the title of the property into my name.