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Level 3
April 11, 2025

disposing of assets-deceased taxpayer

  • April 11, 2025
  • 1 reply
  • 8 views

Do I need to dispose of assets on the asset entry worksheet on a taxpayer's final tax return on the date of death, with $0 sales price? The assets are going to the 2 sons. There is a Schedule F and a Schedule E. 

    1 reply

    sjrcpa
    Level 15
    April 11, 2025

    They weren't sold for -0-.

    You stop depreciation as of date of death.

    Depending on what software you use, enter disposition date as date of death and leave the sales price blank.

    The more I know the more I don’t know.
    janeabs1Author
    Level 3
    April 11, 2025

    Ok, that's what I was thinking. Correct...not $0 sales price; leave that blank. Thank you for your reply! 

    janeabs1Author
    Level 3
    April 11, 2025

    Just to clarify, he is owing more when I enter this way, since there is recapture of depreciation. Upon research, I'm not seeing any information on this, so just verifying this is correct.