How is "unused" depreciation for improvements handled, on real property at time of death?
Imagine my uncle purchased residential rental property for $10,000 in 1950. In 2005 he added an enclosed porch to the property for $9,000 and began depreciating the cost of the improvement over 27.5 years ($327/year). Then he died in the year 2019 with the FMV of the rental at $150,000.
Is anything special done with the unused depreciation on the porch improvement?
Does tax planning typically consider the age of the owner (for example here it may have been better to expense the improvement, or try to categorize it as 15 year property).
Now imagine if:
The porch was destroyed in 2015 due to a windstorm. The demolition was expensed on the 2015 return, and the porch was not rebuilt.