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Investors & landlords
The transfer of basis should be done proportionately. You shouldn't have to 'show your work'.
When you file the 8824 if the IRS has questions they would send you a letter. But the total basis should transfer and their should be an increase in basis based on fair market value. All of that should be fairly obvious from the totals. You should save your worksheets in the unlikely event that you are audited but it should not be anything that requires you mail in worksheets to the IRS. They would be unlikely to pay attention to them anyway.
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March 17, 2023
3:48 PM
594 Views