Question
What happens to prior depreciation when a rental asset gets step-up in basis due to death of spouse in a community property state?
I understand that the step up occurs on date of death, the asset is retired, and then the asset is added as a new asset.
Is prior depreciation deducted from the appraisal at date of death or does it just go away?
Community property state with full step-up at the death of one spouse.
Thoughts and advice would be greatly appreciated!
