Report Gift Tax of Rental Properties

[Gildardo]

I have a client that had several rental properties on Schedule E. He went to a separate CPA to prepare a Gift Tax to transfer his properties to his sons and daughters. How do I report this transaction on Proseries? I talked to the CPA and he told me just to leave them there but I’m not convinced with that solution.

Any word of advise?

[IRonMaN]

If it happened during the year, just enter a selling date for the assets but no selling price.  If it happened as of 1/1/19, take the CPAs advice.

[Just-Lisa-Now-]

1/1/19 or 1/1/20 ?

[Gildardo]

The gift was signed on 2/6/2020 Form 709 for 2019.

If I enter no selling price wouldn't report a loss?

[IRonMaN · Accepted solution]

With no selling price, the software reports nothing on the return.  But sounds like that is an issue for next year if the transfer didn't take place until 2020.

[Just-Lisa-Now-]

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@Gildardo wrote:

The gift was signed on 2/6/2020 Form 709 for 2019.

If I enter no selling price wouldn't report a loss?

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What happened with the rental in 2019?  The gift isnt taking place until 2020.