Prior Depreciation

[srunyan]

Dear TurboTax,

I have inherited a property from an irrevocable trust. Due to how assets were distributed at my mom’s passing (1/2 to an irrevocable trust, 1/2 to my dad), 50% of the property received a step up in 2017. Then upon my dad’s passing the other half of the property received a step up in 2024. 

How can I input these two separate step ups and add prior depreciation in turbo tax?

Thank you for your help. 

Regards,

Steve

[PatriciaV · Accepted solution]

The basis of property inherited from a decedent is generally one of the following.

• The FMV of the property at the date of the individual's death.
• The FMV on the alternate valuation date if the personal representative for the estate chooses to use alternate valuation. For information on the alternate valuation date, see the Instructions for Form 706.
• The value under the special-use valuation method for real property used in farming or a closely held business if chosen for estate tax purposes.
• The decedent's adjusted basis in land to the extent of the value excluded from the decedent's taxable estate as a qualified conservation easement. For information on a qualified conservation easement, see the Instructions for Form 706.

If a federal estate tax return does not have to be filed, your basis in the inherited property is its appraised value at the date of death for state inheritance or transmission taxes.

Since the property is new to you, depreciation starts over again.