topic Depreciation on inherited property in Deductions & credits

Depreciation on inherited property

dgroot1 — Tue, 10 Feb 2026 11:08:13 GMT

On inherited property, when can one start the Depreciation? At this time of death or the year the property is transferred ?

Re: Depreciation on inherited property

MarilynG1 — Wed, 21 Feb 2024 01:17:24 GMT

Inherited Property is an Investment for you. It is not depreciated unless you choose to offer it as Rental Property.

If so, your new beginning Cost Basis to begin depreciating would be the FMV on the date of death.

This would also be your Cost Basis should you decide to sell the inherited property.

Here's more detailed info on Cost Basis of Property.

Re: Depreciation on inherited property

dgroot1 — Wed, 21 Feb 2024 12:08:54 GMT

Sorry for the confusion, when I said inherited property, I was referring to farm land. The estate was large enough to go through probate. At the time of death we were not informed we could use the asset for depreciation. Now that property is transferred into my name can I start the Depreciation schedule now?

Re: Depreciation on inherited property

Critter-3 — Wed, 21 Feb 2024 12:16:41 GMT

Ok ... more details may be needed but land cannot be depreciated. If this is a working farm with buildings on it that either you work or you rent out then the buildings can be depreciated.

If this was a working farm or rental then as of the date of death the estate owned the property and the income/expenses/depreciation should have been reported on the estate's tax return. Once the property has been probated and is in your name then you will report the income/expenses/depreciation on your tax return.

Re: Depreciation on inherited property

dgroot1 — Wed, 21 Feb 2024 16:42:15 GMT

Yes, bare land connot be depreciated. Drainage tiles and excess of nutrients can be. My question is would depreciation start when the land is transferred or at time of death before probate? Thank you

Re: Depreciation on inherited property

JohnB5677 — Wed, 21 Feb 2024 16:54:11 GMT

It's a little bit of both.

The value is established at time of death, regardless of who is going to own it.

Depreciation will stat when an individual has legal control of the property.

Re: Depreciation on inherited property

Anonymous_ — Wed, 21 Feb 2024 21:31:52 GMT

As long as the property is being used as a rental (or for business purposes), depreciation does not stop; the only issue is who (or what entity) is entitled to the depreciation deduction.