Quit Deed disagreement with TP. TP quit deed to another person but prior, property was used as a rental for 6.5 years thus depreciation was taken etc. TP is trying to tell me a quit deed is not the same as a sale even though the title of the property has changed for which the TP's name is no where on the title now. TP's does not believe he has to report sale on his 2014 tax return. Am I missing something?
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Was money or something else exchanged?
If so, it's a sale. If not, it could be a gift (but a Gift Tax return would need to be filed). -
No amount involved in quit deed.
The TP said no money involved. If it's gift, what happens to the depreciation? Also, wont the IRS notice when the rental no longer will appear on TP's 2015 tax return as to where did it go?Originally posted by TaxGuyBill View PostComment
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The receiver also receives the giver's basis, including the depreciation. So when the new person sells it, they will have the reduced basis and may need to pay the Unrepcaptured Section 1250 gain for the depreciation.
No, the IRS shouldn't be bothered by it. The same thing would happen if you converted a rental into personal use. It would not longer be on the tax return, but no sale.
However, make sure the rental is accurate for the part-year the taxpayer had it, including the depreciation.Comment
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Form 709 will be in addition to givers basis
This would be in addition to filing form 709 in tax year 2014. correct?Originally posted by TaxGuyBill View PostComment
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