Daughter, 40 years old single has rented to unrelated persons a house for many years. Basis, net on Aug 31,2017 is $60,000. Prior years depr $15,000 . On Sept 1 2017 daughter transfers and quit claims to widowed mother, age 69 this house.
Mother sells on Oct 20 2017 this house for $110,000. How do mother and daughter report these transactions:
1. Daughter files Sch D only report disposal of house as a gift with no gain or loss?
2. Mother reports some income and expenses, if any of house and depr for one and half month on Schedule E from Sept 1, 2017 to Oct 2017?
3. Mother reports sale of house to unrelated person on Sch D and FORm 4797 based on $110,000 sales price less basis of daughter $60,000 less depr for one and half month while mother owned the rental house?
4. Mother has ord income in recapture of depr of $ 15,000 + one month and half she owned the house. Rest of gain is capital gain?
Are these correct to report these transactions