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

Forum|Forum|5 years ago
August 4, 2020
2 replies
25 views

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.

Lacerte Tax

This topic has been closed for replies.

Best answer by George4Tacks

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.

George4TacksAnswer

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.

Answers are easy. Questions are hard!

H

hgtcAuthor

Level 5

thanks.

T

TaxGuyBill

Level 15

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!

Answers are easy. Questions are hard!

D

DanTheMan

Level 2

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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