There are only two total assets for depreciation.
- The original $90,000 that continues to depreciate from the original acquired date, continues as though there was never a trade.
- The cash up on the exchange of $118,000 with an acquired date of the trade date, like a new asset.
In your situation you have a property received that has no building, so for this reason you must apportion the land value appropriately to each of the three properties you have now. Do this in a method that makes sense based on the acreage.
- The original land value of $62,000
The buildings on two properties will also need to be apportioned appropriately in a method that makes sense (some ideas provided earlier in this thread). For the buildings each will have two assets:
- A portion of the $90,000 (plus a portion of the land of $62,000).
- A portion of the $118,000 (you must decide if a portion of this should be considered land for each of the three properties).
it will be easier if you apportion the original building and land now to each of the properties received versus waiting until one of then is sold or traded later.
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