sold a apartment building

[Rick112]

I sold an apartment building on 7/21/2022. Here are the facts about the ownership since buying it on 7/2/1984.

Bought 7/2/1984 partnership with my parents 50% me and 25% for each parent. Filed partnership return up to 11/11/2011 when the partnership ended when my parents sold the property to me for one dollar. So since 11/11/2011 I have 100% ownership and from that date on I file Schedule E  with my personal 1040 showing the rental numbers. All the the depreciation was used up before 11/11/2011, when I gained 100% ownership, because starting on 7/2/1984 when the partnership bought the property you could take accelerated 18 year depreciation at that time.

    Now my question is - do I use on my tax return, showing the sale info, the 50% portion of the basis to buy the property and also 50% for the depreciation recaptured since all that took place under the partnership timeframe of ownership or do I use 100% for basis and depreciation recapture since I now sold it in 2022 and I have owned the property since 11/11/2011 myself with no partner.  Thanks Rick  

[Mike9241]

because you say the property was fully depreciated on the date of the gift your basis is your basis + their basis when the property was acquired + subsequent improvements less all the depreciation taken.  you assume the depreciation they took so basically your cost is 100% of the original cost + the costs of improvements and the depreciation subject to recapture is the total taken by you and your parents. 

*

your parents made a gift to you when they sold it to you for $1 and should have filed a gift tax return for that year.  when you receive a gift generally your basis in it is the same as the donors. that's true when the fair market value equals or exceeds their tax basis.  

[Rick112]

So basically I treat the basis and depreciation for recapture as if I bought the building myself with no partners ?

Thanks,

Rick