Rental home income, depreciation - does it transfer upon death or when grant deed is finalized?

[klanderso]

Brief history: Mom died several years ago and left a rental home to the Family Bypass Trust.  All income from the rental was given to my Dad and recorded on his taxes via a K-1.  Dad passed away in August 2020 and per the trust I am inheriting the rental home.  

Questions: For the rental income/expenses from September-December 2020 can I put that directly on my taxes? Or, since the county hasn't recorded the grant deed (they've been sitting on it since November!) do I have to record the income as going to the Bypass Trust and give myself a K-1?  I'm guessing the answer to that will also have an impact on when I should mark the rental home as being "disposed" of in the Bypass Trust. My preference would be to proceed with the taxes as if the home has already transferred as of date of death (since it's in progress) and that way I can make 2020 the final year of the Bypass Trust.

Thanks for your help!

[M-MTax]

Recording a deed is nothing more than a formality.....it provides the world with notice about who owns the property and the chain of grantors and grantees. So don't go by that....it's legal and nothing more.