Assume you have only 1 asset on the books. With th 754 you now have 2. The original and the step-up. The step-up date in the date of death so you do no get an entire year's depreciation unless they died on 01/01. But even then, depending upon the asset regular conventions are used. For example, 39 yr commercial real estate, 15 yr land improvements. Since these assets are typically straight-line you can use them. If a cost-seg was done at the time of the 754 appraisal you can get more accelerated depreciation on those assets. Realize, intangible assets are not stepped-up.  I use Fixed Asset Manager and anytime I have a step-up I create a 2nd fixed asset file and do not import it. I used the bottom line depreciation number to enter onto the K-1 as a 754 transaction.