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Report Gift Tax of Rental Properties

Gildardo
Level 3

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?

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Accepted Solutions
IRonMaN
Level 15

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.


Slava Ukraini!

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5 Comments 5
IRonMaN
Level 15

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.


Slava Ukraini!
Just-Lisa-Now-
Level 15
Level 15

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


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Gildardo
Level 3

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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IRonMaN
Level 15

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.


Slava Ukraini!
Just-Lisa-Now-
Level 15
Level 15

@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?


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


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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