Depreciation/Basis for Gifted Rental Real Estate - Spidell

Depreciation/Basis for Gifted Rental Real Estate

Log in to Post

Message Board Depreciation/Basis for Gifted Rental Real Estate

This topic contains 1 reply, has 2 voices, and was last updated by William Dewberry 2 months, 3 weeks ago.

  • Author
    Posts
  • #164746
    Aaron Gordon
    Participant

    The taxpayer is being gifted a residential rental property.

    My understanding is that the building will have to be depreciated over 27.5 years from the time the donee receives the property starting with the donor’s adjusted basis.

    To report his basis, does the taxpayer report the donor’s original cost basis and accumulated depreciation, or will the taxpayer just report the donor’s adjusted basis as his unadjusted cost basis?

    Thank you.

  • #164769
    William Dewberry
    Participant

    Everything moves over from the original depreciation schedule. Copy and paste so to speak.