Looking for reassurance(ignore depreciation):
Taxpayer has rental property that was acquired thru inheritance - FMV at date of death of deceased = $80,000, therefore taxpayers basis is $80,000.
Taxpayer wants to gift the rental property to her kids, so basis of the rental property for the kids would be $80,000 unless the property would be sold at a loss.
If the kids turn around and sell the property for $85,000, they will have a gain of $5,000.
If the kids sell the property for $70,000, there is no gain and no loss is allowed.
Is my thinking correct?
Taxpayer has rental property that was acquired thru inheritance - FMV at date of death of deceased = $80,000, therefore taxpayers basis is $80,000.
Taxpayer wants to gift the rental property to her kids, so basis of the rental property for the kids would be $80,000 unless the property would be sold at a loss.
If the kids turn around and sell the property for $85,000, they will have a gain of $5,000.
If the kids sell the property for $70,000, there is no gain and no loss is allowed.
Is my thinking correct?
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