Message Font: Serif | Sans-Serif
No. of Recommendations: 1
A complication is that my wife acquired the property with her sister. This wasn't working out so my wife bought out her sister. I think this means there are two bases: 1/2 the property based on my wife's acquisition cost and 1/2 on the price she paid her sister.

Yep. That's correct.

As the acquisition was made 30 yrs ago, I presume (for now) that her share of the structure was depreciated away long ago, but the sister's half probably has something left.

Probably correct.

30 years ago was 1983. That's back in ACRS depreciation territory, and the longest life for rental real estate under ACRS was 19 years. (There's some at 15 years, some at 18, and some at 19. I don't remember the exact cutoff dates for each one, but it doesn't really matter as they're all going to be fully depreciated by now.)

MACRS started in 1987, and I would guess your wife bought out her sister some time after then based on your guesses of appreciation since the purchase. That depreciation would be on a 27.5 year life, so there should be some depreciation left.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.