My parents and I own a rental property. How will taxes be assessed when the property is transferred to me?
Posted by RealEstateSEO | Posted in Real Estate SEO | Posted on 10-06-2010
Tags: Depreciation, Irs California, Pay Taxes, Sounds
2
greg y asked:
The property is depreciated every year. After 27.5 years, the cost basis of the property is reduced to 0.
The property is depreciated every year. After 27.5 years, the cost basis of the property is reduced to 0.
Since the IRS and California (where I reside) allow a gift transfer of 1 million dollars tax free, does that mean that if my parents give me this property, that I won’t have to pay depreciation recapture taxes? Sounds too good to be true.
Wouldn’t we be able to transfer this property down from one generation to the other w/o having to pay recapture taxes?
