Question about rental property being included in an estate income tax return

[user17737701179]

I'm in the process of completing an estate income tax return. As I was the executor and sole heir of the estate, I had the deed for the estate rental property transferred to me and I sold it as the seller/owner after the estate had been closed.

The TurboTax Business 2025 software has a box that you can check or leave unchecked in the FEDERAL TAXES -> Income -> Rentals and Royalties section that shows "This rental property was sold or otherwise disposed of during 2025". Checking or not checking this box has an effect on whether the rental property expenses are deducted and show up in the tax return.

So, yes, I did sell the rental property in 2025, but it was not sold during the period of time the estate was open. Do I check the box or not?

Any help would be greatly appreciated - thanks!

[M-MTax]

The estate disposed of the property in the sense that it was distributed to you in kind.

I believe you need to check that box in TurboTax Business and then indicate that the property was converted to personal use in order to stop depreciation as of that date. You will then use the estate's adjusted basis (including accumulated depreciation) to report on your return going forward.

[user17737701179]

Thanks - appreciate it!