The trust became irrevocable in 2013, when my mother passed. It held commercial real estate. In 2017 the real estate was distributed to me. For purposes of depreciation, is the basis value calculated as of the date of death, in 2013, or is it the date it was distributed to me in 2017. Do I start depreciation as of date of death, or when I acquired it.
none of them. if the property was rented during the period 2013-2017 it should have been taking depreciation. your basis is the depreciated basis form the trust. if the property was rented but no depreciation was taken, seek a professional help because you now have a mess to deal with
If it was a regular revocable trust holding the property then the basis was stepped up to fair market value on the date of death and depreciation would begin again using that fmv. All total prior depreciation disappears.
Yes depreciation was taken with the basis calculated as of the date of death. My question is whether I need to establish a new basis as of the date of distribution, or just retain the existing basis. I also need to know if the date depreciation starts, is as of the date I acquired ownership (the date of distribution) or the date of death.
I appreciate your help.
The trust was revocable up to the date of death. Then it became irrevocable. The property was distributed to me about 5 years after the trust became irrevocable. My question is whether I start depreciation as of when it was distributed to me, or whether I just continue the depreciation that has been taken since the date of death.