Transfer to child an investment property owned by parents that have run out of depreciation years.Would a partnership start an investment property's depreciation process?

Forum|Forum|6 years ago
December 6, 2019
3 replies
33 views

50/50 partnership and then wean parents from the LLC. Would that help with taxes and then to restart depreciation process? Parents will hold mortgage and property will be transferred for cost.

ProSeries Basic

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Best answer by TaxGuyBill

If the number of years of the depreciation Recovery Period has ended, in most cases that means the property's depreciable Basis is $0.

Even if the number of years for depreciation were to start anew (I am almost positive it does not for a Partnership), the depreciation would be based on the Basis, which is likely $0.

T

TaxGuyBillAnswer

If the number of years of the depreciation Recovery Period has ended, in most cases that means the property's depreciable Basis is $0.

Even if the number of years for depreciation were to start anew (I am almost positive it does not for a Partnership), the depreciation would be based on the Basis, which is likely $0.

IRonMaN

Level 15

You are correct, oh great smiley guy. If there is no basis left there is not going to be any basis created by dumping the property into a partnership.

Slava Ukraini!

M

Marc-TaxMan

Level 7

Gift (to anyone) has a carryover of Donor's basis, zero

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