ILLMAS Posted March 28, 2021 Report Posted March 28, 2021 TP took over parents zero basis investment property, TP put in over $160K to fix up the rental property and the property is now worth around 400-500K, TP plans on buying out the parents for around 80-100K the value of the property before the improvements. Parents are willing to wait until he comes up with the buyout money or do an IOU, can the TP increase their basis by the buyout money if the haven’t paid it yet? Quote
DANRVAN Posted March 28, 2021 Report Posted March 28, 2021 15 minutes ago, ILLMAS said: TP put in over $160K to fix up the rental property Does TP currently have any ownership in property? 16 minutes ago, ILLMAS said: TP increase their basis by the buyout money if the haven’t paid it yet? Not unless there is a legal and binding contact / note. 17 minutes ago, ILLMAS said: TP took over parents zero basis investment property, Why do parent's have zero basis? Sounds like this transaction would be a partial sale / partial gift since the fmv is greater than the consideration given. 1 Quote
Lee B Posted March 28, 2021 Report Posted March 28, 2021 1 hour ago, ILLMAS said: TP took over parents zero basis investment property, . . . . . First question - What does this mean? 1 Quote
ILLMAS Posted March 28, 2021 Author Report Posted March 28, 2021 Fully depreciated building, no major improvements in 40 years of ownership. 1 Quote
Lee B Posted March 28, 2021 Report Posted March 28, 2021 6 hours ago, ILLMAS said: Fully depreciated building, no major improvements in 40 years of ownership. No, what does took over building mean? It's not not exactly precise terminology! Quote
Lion EA Posted March 28, 2021 Report Posted March 28, 2021 Parents still own the building, not your client? Quote
ILLMAS Posted March 28, 2021 Author Report Posted March 28, 2021 Management and transferring ownership soon. Quote
Lee B Posted March 28, 2021 Report Posted March 28, 2021 This thread is gaining a lot of circular momentum 3 Quote
Lion EA Posted March 28, 2021 Report Posted March 28, 2021 These family situations can go around in circles... 1 1 Quote
jklcpa Posted March 28, 2021 Report Posted March 28, 2021 But it was a quick question! The answer(s) aren't! 1 1 Quote
ILLMAS Posted March 28, 2021 Author Report Posted March 28, 2021 Lol, good thing it’s Palm Sunday 1 1 Quote
Abby Normal Posted March 28, 2021 Report Posted March 28, 2021 3 hours ago, cbslee said: This thread is gaining a lot of circular momentum Centrifugal force warning! 1 Quote
Abby Normal Posted March 28, 2021 Report Posted March 28, 2021 1 hour ago, ILLMAS said: Lol, good thing it’s Palm Sunday Facepalm Sunday 3 2 Quote
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