Estate Planning for Income Taxes
Jan 23, 2014OUTCOME: Client got an additional $40,000 of depreciation deductions after his spouse passed away, and his children should get more depreciation after he passes away
Client owned apartment building that was fully depreciated with spouse in joint tenancy before transferring to an old living trust. Living trust divided assets into a survivor's trust and a marital tr ... ust. I assisted client to do a transmutation of the apartment building to community property. We amended the living trust to enable a full step-up in basis on the death of the first spouse, and another step-up upon the death of the second spouse. This would allow the client, and later his family, to depreciate the full non-land value from the death of the respective spouses.
