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posted Jun 4, 2019 4:36:20 PM

When entering purchase date for a rental property (converted from personal use), do I use the original purchase date, or the date my husband died and my basis stepped-up?

The answer to this will determine whether I enter the original purchase price for depreciation or the stepped-up cost basis.  Thank you.

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Expert Alumni
Jun 4, 2019 4:36:21 PM

Use the stepped-up basis.  This is one of the beneficial provisions in the tax code:  your basis in the property is the stepped-up basis you receive for inheriting the property after your spouse's death.  This allows you to get greater deductions on deprectiation.

We are sorry for your loss.  

1 Replies
Expert Alumni
Jun 4, 2019 4:36:21 PM

Use the stepped-up basis.  This is one of the beneficial provisions in the tax code:  your basis in the property is the stepped-up basis you receive for inheriting the property after your spouse's death.  This allows you to get greater deductions on deprectiation.

We are sorry for your loss.