How do you fill in the amortization schedule of real estate carried over from a partial gift and partial sale?

[lnk-fr]

If I did a partial sale partial gift of real estate from a family member and was wondering how I carry forward the amortization schedule on Turbo Tax? I was told i would inherit the depreciation/amortization schedule as is so it shouldn't be too difficult to copy it. I have access to the return of the family member that I purchased from. 

[Anonymous_ · Accepted solution]

Your basis is the greater of the amount you paid for the property or the transferee's adjusted basis in the property per Treas. Reg. §1.1015-4(a).

See https://www.law.cornell.edu/cfr/text/26/1.1015-4

[lnk-fr]

How do you do that in Turbo Tax online?

[Anonymous_]

With the online products, you might have to contact Support.

What is the TurboTax phone number? (intuit.com)

Otherwise, you need to know what you paid for the property (total consideration) and the transferee's adjusted basis.

[lnk-fr]

Where would I look to check what the adjusted cost basis is?

This was a family member so I can get access to the tax return and gift tax return. 

[Anonymous_]

If a gift tax return had been filed, that should contain the information you need.

The family member should also have records.

[lnk-fr]

Besides the gift tax return, which "records" should they have? 
Oh and one more thing. A CPA at Turbotax Live Help told me that I could also use the values in the tax assessment records by the state. It's higher than what was in the appraisal. The thing is the appraiser came up with how much the house would realistically sell for, but kept the land value the same as what's in the tax assessment meaning the value of the structure is extremely low. In reality the structure is worth a lot more which the insurance company agrees because they force me to get cover for double what the tax assessors put a value on the structure. What do I do in this case? 
 If I'm able to at least use the value in the tax records for the structure, I will be able to get a more fair depreciation schedule, but it would mean the total value of the property will be reported higher than what's in the appraisal hence the gift tax return. 

[Anonymous_]

They might have records of what they paid for the property, improvements made, and any depreciation deductions they may have taken.

No, do not use the tax assessment for your depreciable basis. The tax assessment is for the purpose of levying local property taxes only.

[lnk-fr]

Would that all be in on the federal tax return? If the undepreciated portion of the structure + improvements is greater than what the assessor listed, I may use that instead?

[Anonymous_]

You would use the greater of what you paid for the property or the transferee's adjusted basis.

Which one is greater (and do not use the property tax assessment)?

Also, note that you should be able to find the adjusted basis in the transferee's federal income tax return package.

[lnk-fr]

Is that in their tax return?