We purchase a rental property, then we got divorce and we split the cost of the property. Therefore we became co-owners, the new base for depreciation was changed to 50% of the cost of the property minus land. However, after a couple of years, my ex husband did not want the property so he transferred the underwater value property to me . Should I change the basis for depreciation? if so do I change to the original price? and for accumulated depreciation should I add the amount depreciated by my husband when were co-owners
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from IRS publication 17
Business property. If you hold the gift as
business property, your basis for figuring any
depreciation, depletion, or amortization deductions is the same as the donor's adjusted basis
.
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