Solved: 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 · ‎12-06-2019

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 · ‎12-06-2019

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.

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TaxGuyBill · ‎12-06-2019

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 · ‎12-06-2019

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!

Marc-TaxMan · ‎12-06-2019

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

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?

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