I have a client who owned a rental apartment building and then formed an LLC Partnership for the building. What would the starting basis for depreciation be? Would it continue from where it currently was at transfer or begin anew from when it was transferred?
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Does IRC 722 give you the answer? -
Depreciation continues as it was?Comment
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It is often referred to as "step in the shoes", meaning that depreciation continues as if nothing changed. Original Basis, original placed in service date, etc.
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Also consider looking at TTB starting 20-13 “Partnership Basis”Always cite your source for support to defend your opinionComment
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Who is the NEW PARTNER?This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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