I browsed but didn't find answer to my specifics.
My mother lived in her own home. She also had one rental property that she bought for $100K many years ago. Last year, she gave the rental property to me. It was appraised at $180K last year. Now is that tax time :( Since Turbotax does not support form 709 for gift tax report so I read and read as much information on line as possible. I understand that as donor my mother needs to file form 709 and pays zero tax because of the $5.45M gift limit. That 709 form is not too hard to do by hand in this case.
My mother also claimed depreciation on the rental property during the years under her ownership. My questions are:
Does my mother have to pay tax on the $80K profit/capital gain ($180-$100K)?
Does all the depreciation now work back in her 2016 tax return to pay more tax?
Thanks for your help.
