After divorce we split the rental property.Base depreciation changed to50% However, my now co-owner transfer his share to me.What will be the basis for depreciation now?

[galmeida04]

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

[Anonymous]

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

.

[galmeida04]

What will be his adjusted basis? he use to report 50% of the property?
He transferred the property because at that time we owed more than what the property was worth.
Do we both have to report a gift?
what are the tax consequences?  do I have to pay taxes on the gift portion?

[galmeida04]

What will be his adjusted basis? he use to report 50% of the property?
He transferred the property because at that time we owed more than what the property was worth.
Do we both have to report a gift?
what are the tax consequences?  do I have to pay taxes on the gift portion?

[Hal_Al]

You do not need to file a gift tax return.  He doesn't either, since the property was "under water".

Your cost basis is now the original total cost basis and your prior depreciation claimed is the  total of both what you and he claimed, in the past.