If I inherit fully depreciated property, what is the fair market value on the date of death?
August 12, 2011
Date: 1 Jul 2009
I have a question for you. If I inherit property that was fully depreciated by the decedent, is the tax basis of the property the fair market value on the date of death and do I get to start depreciating the property over again?
Thanks and I am waiting your response...
Date: 10 Jul 2009
Generally the answer is yes to both questions. You will need to establish the portion of the "fresh start" basis attributable to depreciable improvements. (Property inside an entity, such as an S corporation or corporation, won't qualify for this treatment.)
We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.
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