The basis (Cost) of the cabin gifted to you would be the basis in the hands of the individual that gifted it to you, assuming you sold it at a gain. So, normally the basis in this case would be the cost of the property in the hands of the one who gifted it to you. If you inherited it, you could use the fair market value at date you took possession, but that doesn't apply to a gift. You could add the cost of improvements to that basis amount. There would be no depreciation since you did not rent the property.
You are correct in how the schedule K-1 form will appear.
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