Discussion:Depreciation after death.
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Depreciation after death.
| 12 June 2006 | |
| Husband and wife own rental property that is being depreciated. Wife dies.
Community property state so husband keeps half and the other half goes into bypass trust. Does depreciation start over for husband and trust at new FMV on date of death? If not, how is this handled. Thanks, Quinn | |
| 12 June 2006 | |
| In California, you get a 100% step up for federal tax purposes and so depreciation does start over. However, for California tax purposes you only get a step up on deceased spouses interest so depreciation starts over on that half only. | |
| 12 June 2006 | |
| Partnership return is now required. Trusts are not allowed passive loss. | |
| 12 June 2006 | |
| Quinn, if the property was truly community property (and not joint tenancy property), then the step-up for both Federal and California purposes is on 100% of the property. | |
| 13 June 2006 | |
| I've read this stuff from time to time and I've always wondered why more states don't opt for "community property" status. A Stepped Up Basis for 100% of the assets - what a deal. Of course there are other pitfalls. It is absolutely insane for the US Govt tax system to recognize this difference in basis treatment. One more proof that we have a bunch of Bozo's in Congress! | |
To join in on this discussion, you must first
log in.
