YUKEM68 Posted March 21, 2008 Report Posted March 21, 2008 My client sold a rental building in 2003 and purchased 5 rental condos. Deffered gain 497K on form 8824. In 2007 she quit claimed all of these condos to her son with no money exchange! How would you treat this transaction ?? Plese help me with your thoughts!! Thanks Quote
jainen Posted March 22, 2008 Report Posted March 22, 2008 >>she quit claimed all of these condos to her son with no money<< She made a gift , so file Form 709 showing FMV. The donee carries the same adjusted basis derived from the exchange with additional depreciation, allocated among the five properties. He also continues the same depreciation schedule (unless he takes one or more houses out of service). Quote
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