Legal Question in Real Estate Law in Florida
My Grandmother passed away about 5 years ago (Dixie County Florida) and her estate settled in Nov of 2010. My father and Uncle inherited several old rental properties 50/50 that have been fully depreciated. My father passed away in Feb of 2011 (4 months later)and I am his PR. My question is about stepping up the basis from my grandmother�s estate to current market value. My uncle and I are seeking to create a LLC together or split the assets out right but have questions about how to capture the basis and close out the old accounting..We plan to keep the assets and remodel / rent them for the passive income. However, since they are fully depreciated, we are unsure on how to proceed.
Please advise.
1 Answer from Attorneys
Your fathers value would be as the date of his death, and assuming the property is held tenants in common. Your father's interest must now be probated as well.
Your uncle's value to his half would be that value when your grandmother died 5 years ago.
So therefore, for tax purposes, the two halves are not at the same value today. The rest you should ask a CPA.
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