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Financial Planning / Tax Strategies


Subject:  Re: Selling A LLC Date:  5/30/2013  2:44 PM
Author:  ptheland Number:  118647 of 123149

With the added clarification that the gifts were handled quite correctly, let's get back to your questions.

What is his basis? Is it the appraised value at the time of the gifting?

He may have two different basis numbers.

For calculating a gain, his basis (and holding period) carried over from your wife's ownership. So her basis became his basis - including any depreciation taken on the property over the years. (So be sure to give him your depreciation schedule from your tax return.)

For calculating a loss, his basis is the lower of the above number or the appraised value on the date of the gift.

The bottom line here is that any gain since your wife purchased the property will be