Have a Tax Question? Ask a Tax Expert
The son's depreciation starts with his purchase, $40,000. He would use $40k as his basis (less land value for depreciation). He cannot just add his mortgage to the depreciation schedule that was used by the father.
The widow would have inherited at fair market value on the date her husband passed as long as she was not a part owner.
The mother actually made a gift of the amount she sold for less than fair market value.
That does not get added back for the son to use in depreciation. Perhaps at a later sale it will assist him.
If the depreciation (additional depreciation, if section 1250 property) is more than the gain, the balance is carried over to the transferee to be taken into account on any later disposition of the property.
Please remember that you are required to rate in a positive way (look for the STARS or SMILEY FACES) so I am credited with responding.
Checking to see if you responded
You can post below if you need clarification