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Hi Phil,

How and when did your niece come by these properties? From your OP I gathered that she recently inherited them, but if the tax expert you consulted didn't tell you that all of the depreciation is wiped out and the heir starts with a clean basis equal to FMV at the date of death, I must have misunderstood.
I agree, our OP left the transition a bit ambiguous (and perhaps will clarify.)

Meanwhile... given the niece was recently widowed, it brings to my mind the question of a marital transfer at death. How does that play out in the step-up rules? Does it make any difference how the properties were titled at the time of the spouse's death?

Dave Donhoff
Leverage Planner
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