The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/is-the-purchase-at-fair-market-value-if-it-is-30302410.aspx

Subject:  Re: Buying the other half of a rental property Date:  10/5/2012  12:57 PM
Author:  vkg Number:  116739 of 121061

Is the purchase at fair market value?

If it is then the sale is easy, your daughter reports the sale on her income tax, and it is a purchase to you. Her recaptured depreciation and capital gains are no concern to you.

I am not going to venture into how you handle the new purchase. It would seem reasonable to have two separate depreciation schedules, but logic doesn't always apply to taxes.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us