1041 Schedule G for Estate

[keyvie]

@M-MTax- The rental is from my mom's estate.  These are commercial properties.  I do not know if any of this info is helpful or not.  

[M-MTax]

These are commercial properties.  I do not know if any of this info is helpful or not.

     Helpful, yes, BUT rental income and expenses makes this entire return INFINITELY MORE COMPLICATED.            Now we have to deal with depreciation......which is being passed out to the beneficiaries.......and rental expenses. 

[M-MTax]

Anyone who would be willing to help you would need to know more details about the rentals including assets, etc. 

[M-MTax]

Also, did  you have the properties appraised? The values you're inputting into TT Business should be the FMV on the date of her passing. Sorry for your loss, BTW.

[M-MTax]

My final question is what do you intend to do with these properties? Are they being sold? You're doing an estate return and the estate can't hold them forever. Is there a will? What does it say? 

[keyvie]

@M-MTax-In TT there is a place to put in the rental asset summary and this is where you put in the deprecation info.  Maybe this is why there are problems? It ask the following:

Enter the amount you paid for the asset

Enter the value of the land included in the total cost

I did not buy the asset so what values would I input for these? 

[keyvie]

@M-MTax-The properties have been placed in an LLC and we are going to keep it for now.  The probate is not yet final until we decide to close it but the properties have been transferred into the LLC with the County.  We just need to tell the lawyer to close it when we decide.  

[M-MTax]

I did not buy the asset so what values would I input for these? 

That is correct. You did not buy the asset, it went into the estate at its FMV on the date of your mom's passing which is the reason I asked if you had appraisals done. When a person dies owning real estate for example, the basis of that real estate is set to the FMV on the date of death. 

[keyvie]

@M-MTax -what values do I enter in those 2 fields? $0? Or where in TT do I put the FMV 

[M-MTax]

So prior depreciation deductions disappear and the estate starts taking depreciation deductions based on the FMV on the date of death.

[M-MTax]

what values do I enter in those 2 fields? $0? Or where in TT do I put the FMV 

You NEED an appraisal based on the date of your mom's passing. You can't just make up a number. You would enter the basis......FMV on the date of death.......of the building (?) in the rentals section in TT Business.

[keyvie]

@M-MTax -We did a CMA (Competitive Market Analysis) The lawyer said that would work as well.  I used those values for the 2 fields under the Rental Asset summary.  This is only for deprecation right? would it have anything to do with the why we owe tax on the estate? 

[M-MTax]

This is only for deprecation right? 

Yes. What were the numbers you used....and dates? Is there more than one building?

[M-MTax]

would it have anything to do with the why we owe tax on the estate?

Yes, that's possible. You probably also have expenses in the mix.

[keyvie]

@M-MTax-The values provided from the analysis.