@Anonymous_, @Carl , @AmeliesUncle
Hi Carl,
I just read through your step by step instructions. Thank you!
Basically, I think your method does a little more calculation and combines my part with my wife's part into a single asset. So, each property will have 2 assets for 2022 as you said, and only one asset going forward.
If I understand correctly, you are suggesting:
- Stop the original asset by the date of her passing
- Add up the following 2 parts to create a new asset starting from the date right after her passing:
My part: (Original Cost - Prior Depreciation) / 2
My wife's part: Fair Market Value / 2
*Here the "Prior Depreciation" will include prior years' and also prorated for the part of 2022 until her passing date
I think this method and AmeliesUncle's method are both good.
Also, I am just curious to know, you mentioned several times how to calculate the Cost and Cost of Land. Is that really important?
What if I just put everything into the Cost and ignore the Cost of Land completely, will that cause any issue?
I thought the building and the land will always go together, no matter when I buy or sell the property. Ignoring the land will simply save me some time, right?
Thanks!
