Ricardo

[Ricardo]

I have not had this situation before.

If owners of res. rental property gift it to a relative, or non-relative, how is the Sec. 1250 depn recapture handled ?

Ricardo

[joanmcq]

I'm not sure, but I would change the title of the thread; you may get a few more looks that way.

[veritas]

I'm working on the basis for

some mutual funds sold in 2007 which were gifted. What a pain.

Here is what Kleinrock's says:

The basis of property acquired by gift is generally the donor's adjusted basis in the property at the time of the gift. Code Section 1015(a). This basis is used for all purposes, such as depreciation and the computation of gain or loss on a taxable disposition of the property by the donee. Thus, the owner of appreciated property transfers any built-in gain (and the responsibility to recognize this gain for tax purposes) to the recipient when she makes a gift of the property.

Keep in mind this is for property sold at a gain.