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?

[bellbusinessllc]

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.

[TaxGuyBill · Accepted solution]

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]

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.

[Marc-TaxMan]

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