How to allocate depreciation between donor and donee on gifted rental property

[Danny782]

Hi,

I received a rental property as a gift on April 2022. As the donor disposed/transferred the property to me effective on April 2022, TurboTax automatically calculates the depreciation through that partial period for them.

Based on my understanding, the donee should continue depreciating the adjusted basis of the gifted property over the remaining MACRS recovery period. To reflect this, I put the donor's original placed in service date of March 2003 in Turbotax. However, when I did that, Turbotax automatically calculates the full year's depreciation amount for my tax return as opposed to only for the partial period. Can you please let me know how to get Turbotax to calculate my partial period depreciation's amount instead of the full year's depreciation amount?

[ee-ea]

The donor gave you their adjusted basis!!!

https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/property-basis-sale-of-home-etc/prope...

 You start your own depreciation  schedule.

[Danny782]

Thanks for the response! To confirm, should the donee be starting a brand new 27.5 year depreciation schedule using the donee’s own new placed in service date?