Thank you for your question, and thanks for using JustAnswer.com. The basis of gifted property is the same as the basis of the original owner. So, your basis would be the $200,000 less any depreciation they took personally. Now, the IRS imposes depreciation whether or not you claim it on your return
so you would need to take $200,000 and then subtract out what they should have taken as depreciation up until the property was gifted
The amount then would be their basis in the corp, and they would start over with a new set of depreciation on the new basis.
Do you have any further questions?
Current market value does not affect the basis?
No, it does not. Basis of gifted property is basis of donor
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