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Client Dies With Rental Property

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Level 3

I have a client who died in 2019 with rental property.  On her personal return, does the depreciation of the property stop on the date of her death (like the other expenses)?  If so, I how I reflect this in ProSeries?

Then does the property go into her estate and get reflected on the 1041 for the rest of the year?

KMACK

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Level 15
Level 15

On the asset entry worksheet youd enter a date of dispostition (scroll down down down) to stop the depreciation as of that date, do not enter a sales price.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Level 15
Level 15

On the asset entry worksheet youd enter a date of dispostition (scroll down down down) to stop the depreciation as of that date, do not enter a sales price.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Level 10

After death, the rental income and expenses go on the 1041.  You don't have to use a calendar year for that; you might do the beneficiaries a big favor by choosing a fiscal year.  The depreciation starts over with stepped-up basis (or stepped-down, although we don't have to worry about that as much these days -- yet).  

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Level 3

Thank you.  Good tips!

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