Carl
Level 15

Investors & landlords

Work through each individual asset one at a time, in the Assets/Depreciation section. For each asset listed, indicate that "I stopped using this asset in 2022" and continue. When you come to the "Special Handling Required?" screen, read that screen so you understand why I am telling you to select YES. Then select YES.

Also, since I'm sure the value of the property you gifted to her was more than $16,000, you are required to report the gift to the IRS by filing IRS Form 709-Gift Tax Return. If the gift was less than $11,6M then you will *NOT* pay any taxes for that gift. BUt you are still required by law to report this to the IRS.

The TurboTax program does not support the IRS Form 709-Gift Tax Return. But you can get the form at https://www.irs.gov/pub/irs-pdf/f709.pdf. Just file it out and mail it to the address in the instructions for the form 709. Instructions are located at https://www.irs.gov/pub/irs-pdf/i709.pdf

For the recipient of your gift, their cost basis is your cost basis, minus the total amount of depreciation you have already taken. This will matter if they later sell the property, or make it a rental of their own.

While you the giver will pay no "gift tax" on the gift, you also do not get any deduction for your gift. When you gifted the property, you also gifted your cost basis and the depreciation to the recipient of your gift.