Depreciation of inherited assets

Forum|Forum|3 years ago
April 6, 2023
1 reply
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Hi,

My two fold question is this:

1. My son passed away in 2022. He had both commercial and farm equipment on his deprecation schedule. Turbo Tax I assume adjusted his depreciation due to his death and final return. How does this work?

2. I inherited all of the equipment. Can I now list it on my depreciation schedule. If so how would that work. I know the value of the equipment. Would I simply just enter the current value of the equipment? Or do I need to take in consideration any depreciation he had claimed in prior years when entering the equipment?

Thank you for your help and time in advance.

Donald

Mike9241

Sorry for your loss. Turbotax does not adjust the property to FMV on death nor stop depreciating what is on his returns. his depreciation is prorated based on the date of death. it's the executor's job to determine the fair market value of the property. then the heirs or estate depreciate the property based on that value starting on the date after death (date acquired). there is no recapture of the depreciation he took. on his final return, you enter the date of death as the disposal date for each asset but no sales info