Question
Quit Claimed Rental Property to Parents
In 2024, a client quit claimed a rental property (that he owned for the past 5 yrs) to his parents for $10. The original cost of the property was $100,000 and accumulated depreciation was approx $18,000 as of the date it was transferred to his parents.
I assume that my client would not be able to deduct the loss but can't find how to indicate that it was a related party sale on the 4562 worksheet. Any help would be appreciated.
Maybe I would just enter a "disposition" date and not indicate any sales price?
