Clients are filing under the IRS Streamline procedures and have several properties overseas (18). Wife is US citizen. Husband is Green card holder since 2004. Husband owns 16 of the residential rental properties (some since 1991 and few since 2015) and wife has two inherited properties.
They have filed and paid taxes in foreign country and therefore foreign tax credit will apply. My confusion is how to calculate the depreciation basis for these properties and which date to use as placed in service? I am filing returns from 2013 to 2016.
-Which date should I use as Placed in service? Should I calculate the basis from 2004 or 2013?
-And what should I use as the depreciation basis? I have the FMV given by the clients and the assessed values from the foreign filed tax returns. I do not have the original purchase price and improvement details made since 1991.