Transfer of building

[ILLMAS]

Your thoughts on this one, TP was transferred ownership of a rental unit on 12-18-18, however there were no income or expenses from 12-19-18 to 12-31-18.  My dilemma, does it make sense to report it on the TP for a couple of days only or just wait to report it starting in 2019?

Besides the transfer of the unit, former owner  had a separate bank account, that was also transferred over and taxes were paid on that money, basically it’s the profits.

Rental unit was in probate court and took about two years to finally close.

 

Thanks

 

[Lee B]

I would report. After all the essence of the situation is that an active rental exists. It's only due to timing that there is no reportable income/expenses.

Wouldn't you still have  a small depreciation deduction?

[DANRVAN]

4 hours ago, ILLMAS said:

Your thoughts on this one, TP was transferred ownership of a rental unit on 12-18-18, however there were no income or expenses from 12-19-18 to 12-31-18.  My dilemma, does it make sense to report it on the TP for a couple of days only or just wait to report it starting in 2019?

Besides the transfer of the unit, former owner  had a separate bank account, that was also transferred over and taxes were paid on that money, basically it’s the profits.

 

Your client paid taxes on that money which was profits?  from the rental?

In regards to your first question, was the rental available for rent..advertised..

 

[DANRVAN]

Are you saying that during the probate period there was income from the rental which passed to your client through the estate?

You will need to a copy of the estate deprecation schedule to follow the uniformity of basis rules.

[ILLMAS]

2 hours ago, DANRVAN said:

Your client paid taxes on that money which was profits?  from the rental?

In regards to your first question, was the rental available for rent..advertised..

 

The estate did, the property has been fully rented for a couple of years.

[ILLMAS]

2 hours ago, DANRVAN said:

Are you saying that during the probate period there was income from the rental which passed to your client through the estate?

You will need to a copy of the estate deprecation schedule to follow the uniformity of basis rules.

I believe it's a trust, not estate, I would have to check with the TP, I have seen the return and in the past year it has not impacted their personal tax return.

I have a copy of the depreciation, the property had a step-up basis at time of death.

 

Thanks

 

 

[DANRVAN]

Under the uniform of basis rules, you will teat the property the same whether from a trust or estate.  Your client's basis is the adjusted basis on the final depreciation schedule for the 1041.

In regards to you first question, I don't see the point in claiming depreciation for a 2 week period if allowable or not.