Do I pay tax on real estate (now rental property) received from Living Trust?
by admin ~ March 5th, 2010 . Filed under: United States .
mister_look asked:
I inherited a small condo from a neighbor who passed away, as specified in her Living Trust. Is this considered a gift? Do I have to pay Income Tax?
I am now renting out the property, can I claim deductions?
Kelly
I inherited a small condo from a neighbor who passed away, as specified in her Living Trust. Is this considered a gift? Do I have to pay Income Tax?
I am now renting out the property, can I claim deductions?
Kelly
March 7th, 2010 at 2:37 am
The value if it should be depreciated.
The condo building at death if it was not appraised at death if any cannot be for depreciation over 275 years on form 4562 your cost basis for all expenses and you can deduct depreciation over 275 years on form 4562 your cost basis for this purpose the small portion that is land.