Inherited additional Share - How to Adjust Depreciation Cost Basis for Rental Property

[coolcarn1sam]

Greetings for 2020!

I owned part share and have been reporting and depreciating a overseas rental property from 01/01/2015 for 40 years with ALT method. 

In 2019 I received additional 15% share of the property as inheritance.

What is the simplest way to adjust the Schedule E Asset Worksheets and be able to claim additional depriciation ?

I want to avoid having to place a new asset in service as it is same rental property that will continue to receive income and I already have prior depriciation.

Thanks

[tagteam]

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@coolcarn1sam wrote:

I want to avoid having to place a new asset in service as it is same rental property that will continue to receive income and I already have prior depriciation.

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I understand your concern completely, but it is difficult to figure how you can avoid that scenario since there will be a different basis and placed-in-service date.

[DavidD66 · Accepted solution]

You should add it as a new asset, just as you would if you made an addition to the property.  You will link it to the existing property so the depreciation will show up on the same schedule E.