@Carl wrote:
Weather you gift the property to your parents or someone else, the recipient's cost basis will be the "lesser" of the adjusted cost basis (subtracting depreciation taken) or the FMV at the time of the gift.
That would be dependent upon whether there is a gain or loss when the property is sold.
See https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/property-basis-sale-of-home-etc/prope...
