basis real estate distributed from an irrevocable...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
warreniblum
Returning Member

basis real estate distributed from an irrevocable trust

The trust became irrevocable in 2013, when my mother passed. It held commercial real estate.  In 2017 the real estate was distributed to me.  For purposes of depreciation, is the basis value calculated as of the date of death, in 2013, or is it the date it was distributed to me in 2017. Do I start depreciation as of date of death, or when I acquired it.

Thank you

6 Replies
Anonymous
Not applicable

basis real estate distributed from an irrevocable trust

none of them.    if the property was rented  during the period 2013-2017  it should have been taking depreciation.    your basis is the depreciated basis form the trust.   if the property was rented but no depreciation was taken,  seek a professional help because you now have a mess  to deal with 

halpalms
Level 5

basis real estate distributed from an irrevocable trust

If it was a regular revocable trust holding the property then the basis was stepped up to fair market value on the date of death and depreciation would begin again using that fmv. All total prior depreciation disappears.

warreniblum
Returning Member

basis real estate distributed from an irrevocable trust

Yes depreciation was taken with the basis calculated as of the date of death. My question is whether I need to establish a new basis as of the date of distribution, or just retain the existing basis.  I also need to know if the date depreciation starts, is as of the date I acquired ownership (the date of distribution) or the date of death.

I appreciate your help.

warreniblum
Returning Member

basis real estate distributed from an irrevocable trust

The trust was revocable up to the date of death.  Then it became irrevocable.  The property was distributed to me about 5 years after the trust became irrevocable. My question is whether I start depreciation as of when it was distributed to me, or whether I just continue the depreciation that has been taken since the date of death.

halpalms
Level 5

basis real estate distributed from an irrevocable trust

Basis for depreciation starts on date of death.........do not establish new basis as of date of distribution......date of distribution means nothing. 

warreniblum
Returning Member

basis real estate distributed from an irrevocable trust

Spoiler
Thanks
Dynamic AdsDynamic Ads
v
Privacy Settings