Form 1041 estate with rental property;

[boomerlove88]

Completing Form 1041 estate return for parent who passed in November 2020.   He owned a rental property and TT is asking (i) when I bought the asset or started using it for business; and (ii) amount paid for the asset.  Do I use the date of death for item (i) and the fair market value on date of death for item (ii)?

[tagteam · Accepted solution]

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@boomerlove88 wrote:

Do I use the date of death for item (i) and the fair market value on date of death for item (ii)?

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Yes, it would the date of death (fair market) valuation and the date the estate "received" the property.

Recall that you need to prepare the final return (1040) as well.

I am sorry for your loss.