Bob Bruss passed away this week, on Wednesday. If you’re a regular reader of your local real estate section, you probably have read Bob’s work many times.
Bob was one of the great real estate writers, using his experiences as a real estate attorney, property investor, teacher and real estate broker to infuse his columns with a dose of reality. He hailed from Edina, MN, and often wrote about his hometown.
He was smart and he really cared about his readers. He felt an obligation to provide them with the best information and always looked at new technology and trends with an eye toward how it would help consumers.
He was unfailingly polite, a true gentleman. He was kind in his reviews of my books, but was also kind when he explained why he wouldn’t review the 3rd edition of my 100 Questions Every First-Time Home Buyer Should Ask book (he said it wouldn’t be fair when he had reviewed the two previous editions and there were so many new titles out). He was nice to everyone.
I first met Bob at a meeting for the National Association of Real Estate Editors nearly 20 years ago. I last saw him in early August, at the most recent Inman Connect, in San Francisco. He looked great, despite walking slowly from a recent surgery, and said he’d see me at the National Association of Realtors conference in the fall, or perhaps at the next Inman Connect, in NY.
He won’t be there. And, we will miss him very much.
Sept. 30, 2007.
I am sorry about Bob’s passing. Sounds like he was quite a knowledgeable person! He will be in my prayers.
I have a few questions about real estate rental property inheritance and taxes after delayed selling. Would you be able to assist?
If so, the situation is as follows:
My niece, inherited some rental properties in 2007 from her dad, who was the last of her parents to die. The properties were held in a normal living will or revocable trust. She was the only heir and then formed a Chapter S Corporation to manage the rental properties for about 10 years (still in trust) with proceeds and tax exemptions and profits flowing into her personal 1040.
She sold her properties circa 2017 and we believe the following to be true but are not certain:
.. Properties should have been inherited on a stepped up cost basis in 2007
.. Formation of the S Corp should not have changed the stepped up basis status, and profits, deductions, etc. would still flow to her personal 1040.
.. Depreciation should have started over in 2007 and prior depreciation was erased at time of the inheritance in 2007.
.. Since the properties were at a high in 2007 (when her dad died) and then declined but never recovered fully, we believe there is no gain over the 10 years and the capital loss, coupled with deductible expenses and property taxes, should fully or partially offset the 25% of depreciation recapture that the IRS requires since the time of her inheritance.
.. We are not sure if the IRS treats inherited rental property in trust, later placed in Chapter S but still in trust, differently than if not so incorporated. Does the stepped up basis remain? And, can a capital loss be claimed–if such loss exists vs. stepped up basis–and will such loss have the ability to offset some or all of the depreciation recapture?
RC