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Gifting of machinery


Marie

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Father and son were farming.  Previous preparer depreciated machinery as if the father owned, but it was actually the son's.  Now son has sold the machinery.  Father is gifting farm machinery to son.  Basis is very low as most has been almost depreciated out on father's return.  Son receives father's basis as his basis.  Son has not depreciated gifted machinery.   If son held for more than 2 years, could he sell the machinery as capital gain income?  Does son receive his father's long term basis, maybe? 

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18 hours ago, Marie said:

.  Now son has sold the machinery.  Father is gifting farm machinery to son. 

But wait, wasn't it his to begin with? 

If I am following this correctly,  how can  son receive a gift of property he already owns?

How can dad establish a basis in property he never owned?

On son's side of this,  I believe a 3115 is in order.

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