Condo place in trust

[Margaret CPA in OH]

Sigh, yet another wrinkle.  Elderly long time clients; husband passed away early January; early 2024 condo in FL previously jointly owned was place in wife's trust (I don't yet know what kind, just got this info today) to convert to rental property.  So I have all, I think, the data from the rental.  If a revocable trust, does this just go on Sch. E as usual?  Never had one of these.

 

[Slippery Pencil]

Yes, Sch E.

Also looks like she gets a stepped up basis on the inherited half of the condo.

[Margaret CPA in OH]

And the wrinkle grows larger.  For 2024 the condo was placed in service for rent since mid-January 2024, husband passed early January 2025 so not sure what the trust says when one dies.  I have pretty good value for depreciation from the auditor's website.  Wife will likely pass away within weeks, in hospice care. I don't know who gets it then but am thinking that's a 2025 issue and, in any case, does not affect the depreciable value for the rental activity.  Basis changes only come into play with his and her final 1040 for 2025 as both are expected to be deceased and likely all ends up in some trust or other.  I don't know who will be managing the trust return(s) after wife passes, probably the high priced attorney as the daughters will likely not choose me - and that's okay with me!

[Slippery Pencil]

I read the original post wrong.  I thought the husband passed 2024, then the condo was put into the trust, then the condo was rented out.

[DANRVAN]

1 hour ago, Margaret CPA in OH said:

husband passed early January 2025

 

On 3/20/2025 at 5:48 AM, Margaret CPA in OH said:

husband passed away early January; early 2024

The husband that keeps on dying

So which one was the typo.

[Margaret CPA in OH]

Can you tell I'm blithering now?  He died in January 2025.  This bulging disc at L3 and the drugs trying to keep the pain at bay are playing tricks. 

[Lee B]

Yeah, pain can wear you down and make it hard to concentrate.

This morning I was finishing up a tax return when I realized that my client had moved and I had forgotten to enter their new address.

[Margaret CPA in OH]

Yep, been there, done that, too.

[jklcpa]

I was wondering about the stepup in basis at husband's death in 2025 when it was originally a joint property that was placed entirely in her trust in 2024 before he passed.  Does her trust get a stepup, or does it stay at the amount contributed, or does it depend on the type of trust?  Sorry, I was also confused by the shifting dates and wording.  Maybe we all should take the night off.

[Slippery Pencil]

26 minutes ago, DANRVAN said:

So which one was the typo.

Neither date was a typo.  The semicolon instead of a period between January & early in the original post ("early January; early 2024") was at best a poor choice.  Stating "the husband died in January 2025" instead of saying "passed early January" and listing events in chronological order would have been greatly clarifying.  But neither 2025 or 2024 were typos.  Though your use of a period instead of a question mark is a typo.

[jklcpa]

3 hours ago, jklcpa said:

I was wondering about the stepup in basis at husband's death in 2025

Never mind. Reread Margaret's post about not being the preparer after 2024, so no need to answer this. 

Blasted pounding headache from being on the road all day and not enough coffee = not thinking clearly. 

[DANRVAN]

2 hours ago, jklcpa said:

Blasted pounding headache from being on the road all day and not enough coffee = not thinking clearly. 

Take care and be sure to stay hydrated.

[Jim Oh Bkkr]

14 hours ago, Lee B said:

client had moved and I had forgotten to enter their new address

It's bad enough when they don't tell you, but I really get pissed when the idiot between the keyboard and the chair opens 18 pieces of mail - all with the yellow "postal" change of address stuck to them - and STILL doesn't make the change!