I was gifted a rental business office property from my parents and I sold the property in 2024. My parents purchased this office rental property for $60,000 (split value Land $30,000 Building $30,000)in 1980. My parents rented this office to me for my business from 1980 to 2010-I paid FMV rent and paid all the property taxes and utilities. My parents put in $25,000 of new windows/carpeting and other miscellaneous capital improvements. during this time period. My parents gifted me the property in 2010 (FMV of the property at that time was approximately $85,000. My parents passed away 2 years after they gifted me the property. I am unable to find any of my parents past tax records, so I have no idea of how they handled the accounting of this property. My assumption is they depreciated the building and improvements during the period of time they owned the property. During the time I held the property I did not make any capital improvements except for a new HVAC system and new windows (approximately value of $5,000) and these expenditures were made in 2024 right before I sold the building. I ended up selling the property for $120,000 in November 2024. Any suggestion on how to go about reporting this?
