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how to enter step-up basis in rental property depreciation for individual tax returns

hgtc
Level 4

Taxpayer died and surviving spouse got step-up basis for all rental properties.  How do I enter these new step-up basis in "depreciation" section?

Thanks.

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George4Tacks
Level 15
Enter date of sale on all assets. ONLY date of sale.
Then enter all the new assets, assuming they all get full step up, with a new date as of the previous date of sale. Be sure to allocate Land (99) vs Building.

ex-AllStar

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5 Replies 5
George4Tacks
Level 15
Enter date of sale on all assets. ONLY date of sale.
Then enter all the new assets, assuming they all get full step up, with a new date as of the previous date of sale. Be sure to allocate Land (99) vs Building.

ex-AllStar

View solution in original post

hgtc
Level 4

thanks.

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TaxGuyBill
Level 14

As was noted by George, is this in a Community Property State that has the full step up?

If it is in a non-Community Property State that only gets a 1/2 step up, then the entry will be different.

George4Tacks
Level 15
MUCH DIFFERENT!

ex-AllStar
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DanTheMan
Level 1

The above response mentions Date of Sale, what  entries must be made in Lacerte 2020 to record the step-up in basis if the assets are not sold in a community property state?

Thank you

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