Does Proseries Basic have a streamlined way to remove rental assets as of the date of death of the Texas taxpayer who's spouse will be using the new FMV step up in basis?

mattcpagigem · ‎12-07-2019

I have 27 rental properties of a Texas taxpayer, who's spouse passed away in 2018. I will need to remove the assets from the depreciation schedule and enter the FMV of the rental properties to record the step up in basis that is allowed. Each rental property may have 7 or more line items that are from prior year major improvements. Just wondering if there is a more streamline way to do this.

poolcleaner · ‎12-07-2019

When I had a similar situation with 43 different properties with the accompanying improvements, I created the new asset information and then deleted the old one. Since the old one was valid for a part of the current year, I did not remove it until the following year. The biggest danger was being certain to remove all the outdated assets the following year. Watch out for community property situations as opposed to non community property states. Like you there was a big search for an easier way but I certainly couldn't find it.

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TaxGuyBill · ‎12-07-2019

"Since the old one was valid for a part of the current year, I did not remove it until the following year."

Shouldn't you enter the disposition date on the old assets to stop that depreciation? Then they shouldn't carry to next year.

poolcleaner · ‎12-07-2019

@TaxGuyBill Very definitely! I had that comment in there because one or two of them did manage to transfer to the next year. Fortunately I caught them before the return was filed. It had been well over 175 assets that had the first entry and then that was doubled with the death of the spouse. There is always a sneaky one or even two!