|
| The tile is depreciated on a 15 year schedule or by using section 179. The tile has value, kind of like an irrigation pivot has value on a piece of ground.
When you pass on the whole works gets a stepped up basis as it transfers to your heirs. Which works both ways both positive and negative: negative if your assets are greater than the lifetime exemption subjecting your heirs to estate tax, positive in the regard that if they decide to sell it their basis to determine taxable income is based on its value at the time they inherited it. The tile would continue to have value as long as it is operable and doing its intended purpose.
As far as saying, "it was on rented ground" would not be advisable. The IRS picks through estates with values over or near the exemption limit with a fine tooth comb. Estate valuations you do not want to get fast and loose with. | |
|
179 excemption- tile and setup in Basis on land
