Greetings all and thank you in advance for your help.
My 3 brothers and I inherited our parent's interest in commercial rental property that is on a triple net lease.
We each inherited 12.615%.
We had an appraisal done at the date of death to determine the fair market value. I also have a copy of the property tax records.
The property was appraised at $1,290,000. The property tax records show that the market improvement value is $248,600 and the market land value is $228,200. Yes, I do know that land is not depreciated.
When entering this property on the tax return do we enter the value of the property based on our % of ownership, $162,734 and then the same with the market improvement value from the property tax records, $31,361or do we enter the full amount of each and indicate on the return that we own the 12.615%?
You'll need to sign in or create an account to connect with an expert.
Yes, you can enter full amounts and indicate the % of ownership in the Property Profile in the Rental Section.
Your Cost Basis will be the FMV at time of death (stepped-up basis).
The Property Tax records are used to determine the % of Land to Building ratio when reporting Land and Building basis amounts.
Here's more info on Entering Rental Property.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
noodles8843
New Member
admin
New Member
c0ach269
Returning Member
vithlanisamay
Returning Member
scatkins
Level 2