Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-27-2011, 01:45 PM
Junior Member
 
Join Date: Feb 2011
Posts: 1
Rental Property Cost Basis and Depreciation

I inherited a rental property when my father died in 2009. The property was in my deceased mother’s trust. I thought I would get a step up in basis based on my father’s death date. The estate attorney says that my father had a “life estate” in the trust and that my basis is from 1998. My father continued to file his tax return as they always had using the cost basis from 1978 instead of taking a step up 1998. The property has always shown a loss. In doing back taxes from 2007, I was naïve and reported major capital improvements as repairs. My question is: should I file an amended return for the last three years using the step up in basis for depreciation? Should I move the capital improvements from repairs to depreciated expenses? Will I end up paying more or less when doing my 2010 tax return on the sale of the property depending on amending the returns?



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


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

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
cost basis dbkc Capital Gains 1 02-24-2011 09:45 PM
Correcting excess depreciation (7 years) and a (stupid) Form 4562 cost-basis GummyBear Rental Real-Estate 1 02-10-2011 12:05 PM
Property Rental conversion to Primary Residence and Back to Rental Property jgmeyer Rental Real-Estate 1 01-03-2011 08:47 AM
Foreign rental property depreciation Rah_TT Rental Real-Estate 1 07-25-2010 08:15 AM
Unknown cost basis of a spinoff and unknown basis date Joy Joy Capital Gains 1 07-12-2010 10:35 AM

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