Sch E rental properties- Transfer of ownership thru Quit claim deed
I have two clients who co-own 3 rental properties 50/50 (originally were MFJ, but divorced along the way and split ownership half ways). In late 2020, they decided to split properties as 2 and 1 (ex wife got 2 bldgs and ex husband got 1) by just removing their names from the respective titles of property. this sounds like Quit claim deed to me as there was no exchange of money. I am learning from online research I may have to file form 709 for each of them. Is that correct and how do I adjust tax basis in the asset worksheet for the property received? And how do I dispose the property given away?
