Level 3

Donation of Rental Property

Forum|Forum|5 years ago
March 3, 2021
2 replies
16 views

I have a client who who donated property which was formerly a rental. He has owned it for over 30 years, so the property is fully depreciated. The original basis was $27,100 for depreciation purposes. The adjusted basis is $7900. The FMV is $105,000. We have the appraisal to show value. How does this get reported on Schedule A? I know the deduction will be limited due to his income. Is he entitled to FMV and/or do I need to recapture the depreciation as ordinary income?

This topic has been closed for replies.

sjrcpa

Level 15

Form 8283. Most likely he can deduct FMV. See the form instructions.

The more I know the more I don’t know.

The Tax Shelter

Level 2

I have a similar situation. Fully depreciated rental property purchased in 1972 was donated. Purchase price of asset was $30,992. Hud-1 to recipient shows "gift" of $43,959 + expenses.

1. I am assuming the gift is $43,959 ?

2. Is there any gain on the disposition?

A.C. Stickel

sjrcpa

Level 15

Was the donee a charity? I've never seen a HUD 1 for a gift of property to a charity.

The charitable contribution is the FMV determined by the required appraisal.

No taxable gain on a contribution of appreciated property.

Or was this a bargain sale to charity? More complicated.

The more I know the more I don’t know.

The Tax Shelter

Level 2

Yes, it was given to a 501(c)(3). I agree about the Hud-1. It wasn't a sale, just a transfer. & I'm not sure how they arrived at the value. It wasn't the selling price or the appraised price.

A.C. Stickel

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