Tax Law (Questions About Taxes)/Depreciation


My parents left property in a trust for me and three siblings.  The property is being rented out.  Each of us receives money on a quarterly basis from the rents, (the trust did not say that had to be done).  We could sell the property.  We receive a K-1 every year.  The house is 35 ys old.  Does depreciation start new after an inheritance?  And should the depreciation be passed to all inheritors in the trust?


Thanks for your question.

Yes, when the house is inherited it receives a stepped up basis of the fair market value as of date of death.  Depreciation will start at that time, based on the new valuation.

Depreciation is passed on to the beneficiaries of the trust through the determination of profit or loss on the rental activity.  Part of the trust income tax return will be a Schedule E.  Depreciation is reflected on this form and reduces your gain.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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