Depreciation on inherited property

[dgroot1]

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

[MarilynG1]

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. 

[dgroot1]

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?

[Critter-3]

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. 

[dgroot1]

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

[JohnB5677]

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.

[tagteam]

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.