@Carlmaking sure I understand this correctly & there wasn't a typo lol: "All in service dates and cost basis on their 2019 tax return will match exactly all that information on your tax return. Their carry over losses (if you have any) will either match or exceed what's on the 8582 you provide them."
recipient put down my original date in service of the property and all assets have the original date... nothing gets the quitclaim date, right?
I saw ur post over here (the property ended up being sold a few months later last year within the same year) https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/tax-on-giving-rental-... and see where u indicated regarding taxes for the recipient when it's sold: "
Bottom line is, you are the one who will pay tax on that depreciation already taken. But you will not pay it until the tax year you sell the property. There are two ways to handle this is "your" tax return.
1) your mother gifts you her original cost basis in the property along with all the prior depreciation. Your cost basis on the property will be her cost basis *MINUS* all the depreication your mom took on the property while she owned it. This means your "in service" date will be one day after your mom reported it as given to you, and for "YOU" depreication starts all over for the next 27.5 years depreciation the new lower cost basis for you over the next 27.5 years.
2) Your mother gifts you her original cost basis int he property along with all prior depreciation. Your cost basis is "EXACTLY" the same has hers, your in-service date is EXACTLY the same as hers, and your prior depreciation already taken is EXACTLY the same as hers.
Overall, I highly recommend you select option 1) above."
Since this was gifted and disposed of within the same year, option 2 is still the best? And not option 1 u mentioned for that person? Or when would anyone use option 1... this is mindboggling, sorries! But thank u for the explanations 🙂
