rbynaker
Level 13

I don't know the answer but I'm surprised there's a loss with a 1/2 step-up in basis.

Basis for loss would be:

50% of original cost basis
-50% of accumulated depreciation
+50% of FMV on date of death

Can you share rough numbers?

Edit: Got distracted in the middle of writing this and didn't see Jeff's post, but sounds like we're on the same page!  The situation you describe is not impossible, just doesn't pass my sniff test.