Catherine Posted April 13, 2023 Report Share Posted April 13, 2023 What happens to the original owner's depreciation (allowed or allowable) when a rental property is inherited? Does it go poof! like a soap bubble, or does the inheritor have to recapture it if/when they sell the property? Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted April 13, 2023 Report Share Posted April 13, 2023 Poof. New owner, new basis. Start from scratch. You will have some depreciation if it is continued as a rental. Tom Longview, TX 4 Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 13, 2023 Author Report Share Posted April 13, 2023 1 minute ago, BulldogTom said: Poof. New owner, new basis. Start from scratch. That's what I thought, but could not find specific confirmation. Thanks, Tom! 1 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted April 14, 2023 Report Share Posted April 14, 2023 Thats what I thought too and without a reference. Client inherits the property at FMV date of death. That's their basis and start over. 2 Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted April 14, 2023 Report Share Posted April 14, 2023 Catherine- if the IRS would just use words like "poof" we would be able to do our research a little more efficiently! 3 2 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 14, 2023 Report Share Posted April 14, 2023 Similar topic and discussion from late last month: 1 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted April 14, 2023 Report Share Posted April 14, 2023 On 4/13/2023 at 11:46 AM, Catherine said: could not find specific confirmation Code section 1014(a). 1 1 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted April 14, 2023 Report Share Posted April 14, 2023 Good time to do a cost seg 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 16, 2023 Author Report Share Posted April 16, 2023 On 4/14/2023 at 3:51 PM, DANRVAN said: Code section 1014(a). They hide when I look for them. Somehow the key words I pick for searching never get me the pieces I need. Thanks! 2 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted April 16, 2023 Report Share Posted April 16, 2023 I used ChatGPT's free version to ask some tax questions and the results were very good. All our tax research will be AI driven fairly soon, and personally, I've been waiting for this my entire career. 1 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted April 16, 2023 Report Share Posted April 16, 2023 On 4/13/2023 at 9:40 PM, Terry D EA said: Thats what I thought too and without a reference. Client inherits the property at FMV date of death. That's their basis and start over. This is exactly what I was going to say. 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 16, 2023 Report Share Posted April 16, 2023 I looked at ChatGPT's site for a few minutes and have been receiving emails from it ever since then... without giving it my addy. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 16, 2023 Report Share Posted April 16, 2023 I looked a couple times, didn't think to bookmark it or save it in any way, and have never heard from them. I wished I would hear from them, because I had to really search hard to get back to it. My first time returning, I saw the two letters (price increase, firing) it wrote for me. But the next time, I couldn't get back to that same place! After tax season. Besides, now there's something like ChatGPT4 and our search engines will be using it, and hopefully out tax software... Quote Link to comment Share on other sites More sharing options...
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