Depreciation
Le Mans Master
Joined: Sep 2003
Posts: 8,847
Likes: 795
From: Longview Texas
The actual value probably does not matter, except to show that it went down in value since 2014 and not up.
As pointed out in the above post, you only pay tax on the amount the asset had appreciated in value since you inherited it.
It might be worth noting that if it has depreciated, you can deduct it from income taxes as a short term capital loss.
As pointed out in the above post, you only pay tax on the amount the asset had appreciated in value since you inherited it.
It might be worth noting that if it has depreciated, you can deduct it from income taxes as a short term capital loss.
Last edited by TEXHAWK0; Jun 26, 2017 at 09:56 PM.
Le Mans Master
Joined: Mar 2016
Posts: 9,160
Likes: 4,009
From: 2019 CMG Z06
If it's an asset gifted to you, and if it's anything like securities, your (cost basis) is the value of the asset the day the original owner passed away. However, unless the car was given to the OP's business, I highly doubt he/she can write off depreciation (I'm not a CPA though, I could be wrong). The real lesson for all of us here is to make sure our hard earned assets do not fall into the pathetic probate system. At the least, make sure you have T.O.D. (transfer on death) designations on as many assets as possible.
Pro
Joined: Mar 2012
Posts: 593
Likes: 139
From: Nature Coast FL
