If depreciable property is transferred by gift, any depreciation recapture potential carries over to the donee.

Question

Quizplus · Accepted Answer

When depreciable property is transferred by gift, the donee inherits the donor's basis in the property, including any potential depreciation recapture that would have been applicable to the donor had they sold the property instead. This means the donee takes over the property with its existing tax attributes, including any depreciation recapture potential.

If Depreciable Property Is Transferred by Gift, Any Depreciation Recapture