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dknewc
Level 1

TT treatment of rental property on decedent's return

On my deceased mother's return, TT wants me to enter a sales price for her condo (and land) which she had rented for ten years.  After she passed in January, 2020, I continued to rent the unit as a trustee of her trust.  I have not disposed of it.  How do I handle this TT requirement?

3 Replies
JoannaB2
Expert Alumni

TT treatment of rental property on decedent's return

Trustees file the final income tax return If the estate has gross income of more than $600 for the year.  When you placed a property for rental, aside from the rental income, you need to enter all the expenses including depreciation of the condo.  You don't have to sell the property to claim depreciation. To depreciate a rental property, you enter the cost of the property and date it was placed in rental..You may need the prior tax return for reference. Depreciation for condo unit is only available for the builiding as the land is not depreciable. 

 

Once the returns are done, you must file form 56, Notice Concerning Fiduciary Relationship, and form 1310, Statement of a Person claiming Refund Due to a Decased Taxpayer, if due for any refund.

 

See, filing the final return of a deceased person, link.

dknewc
Level 1

TT treatment of rental property on decedent's return

     My mother has been renting her condo for the past 10 years.  During all of that time she has reported income, itemized expenses, and claimed depreciation for the condo.  She died January 31, 2020.  I am filing her return for 2020.  I entered her condo income, expenses, and depreciation for the one month of 2020 in Turbo Tax as she had done in previous years. 

     However, the Turbo Tax program insists that we also enter a sales price for the condo even though we did not dispose of it.  It continues to be occupied by the same tenant and owned by her revocable trust which became irrevocable upon her death.  I am asking how we get around this Turbo Tax requirement that we enter a sales price when we didn't sell or dispose of it.

KatrinaLO
Intuit Alumni

TT treatment of rental property on decedent's return

If you are having issues and need assistance, please contact customer support. Please see the Customer Support phone number hereIf you would like to reach out through our website, please see the TurboTax FAQ below for contact information: https://support.turbotax.intuit.com/contact/

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