Q. At your Ag seminar I thought you mentioned that if someone receives a gift, say a pivot and motor from your father who’s retiring, that the son could depreciate that pivot and motor all over again. Is that correct? My accountant is saying no, only if there is unused depreciation left unused by the father. Please let me know, thanks!
A. Your accountant is correct. If the pivot would have passed through your father’s estate then there would have been a basis step up and you would have been able to depreciate based on the fair market value at the time of death. Fortunately your father is still with us, so there is no estate. Sorry if I confused you.
Larry Kopsa CPA
