I've hit a roadblock in my research on the use/abuse of TIFs. I've asked some professionals the below question, however, none were willing to answer or gave me conflicting answers.
The question: What is the GAAP basis for depreciation for the new owner of a commercial building purchased out of foreclosure? Say, a building built for $1 million having a 15-year depreciation schedule that at three-years-old is purchased out of foreclosure for, say, $500 thousand. Is the basis for the new owner still the original $1 million or the $500 thousand?
I've tried to answer this myself, but have not been able to filter out the myriad of non-related results associated with "depreciation."