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Old 02-17-2015, 03:09 AM
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Inherited rental’s tax situation

At uncle's death in 2009 , his home was put into a testamentary trust for mom's benefit. From 2010-2014 home became a rental property with some improvements, took depreciation on 1041 tax returns..
End of 2014: Trust terminates with death of mom late 2014. Property to be distributed per uncle's will to brothers and I. We will soon transfer into LLC and continue rental activities.

1. I assume basis is from when property originally placed into trust ( uncle's death)?

2. Preparing trust final return in Turbo Tax 1041:
Is asset "disposed" as in a $0 sale...and its treated as non-taxable event as in distribution of trust principle?
what happens to depreciation schedule, is there recapture? Or is depreciation schedule continued?

Any help appreciated. Thanks, brian



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