Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 06-14-2016, 11:07 PM
Junior Member
 
Join Date: Jun 2016
Posts: 2
death of rental property owner..........

When my mom dies, her rental property home will be mine. I'm afraid that the capital gains taxes will be high. She has owned the house for about 25 yrs and probably taken depreciation on it (I understand that doesnt matter if you took it or not- that if she sold, it had to be added to the sale price per IRS). I believe the basis of the house will be the value at her death, but will the IRS forgive those depreciation amounts when figuring capital gains for say me, the new owner?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 06-15-2016, 04:05 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by burrpenick View Post
When my mom dies, her rental property home will be mine. I'm afraid that the capital gains taxes will be high. She has owned the house for about 25 yrs and probably taken depreciation on it (I understand that doesnt matter if you took it or not- that if she sold, it had to be added to the sale price per IRS). I believe the basis of the house will be the value at her death, but will the IRS forgive those depreciation amounts when figuring capital gains for say me, the new owner?
YOUr(as a heir), basis ,for depreciation is the FMV as of date of MOTHER;s death or the alternate valuation date if that value was used on the decedent's estate tax return. So a question that you may raise is: What happens to the accumulated depreciation of the rental pty owned by your mom;as said, Internal Revenue Code states that you will receive a step-up in basis of the FMV at the time of death. The accumulated depreciation prior to mothr's death is irrelevant. Once the property has been inherited, the depreciation schedule would begin based on the new FMV as you said.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Income exceeds $150,000. Why doesn't Turbotax offset passive losses from one rental property against passive income from second rental property? aboniadi Rental Real-Estate 4 03-17-2014 02:15 AM
Can a LLC equity partner in an investment/rental property deduct travel to inspect/maintain property? StageFourLLC Rental Real-Estate 0 03-12-2014 09:06 PM
Can Suspended Losses from Rental Property converted to Personal Residence be released upon sale of another rental property? mountainaire Rental Real-Estate 1 04-05-2011 03:59 AM
Property Rental conversion to Primary Residence and Back to Rental Property jgmeyer Rental Real-Estate 1 01-03-2011 08:47 AM
Update Cost Basis upon Death of Co-Owner? dldaven Capital Gains 0 10-10-2009 05:44 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.