Converting business property to rental property

[chilibean42]

I closed my restaurant last year and started leasing the building and equipment this year.  How to I account for the conversion of the building and equipment from business property to rental property?  Some of the equipment is fully depreciated and some is not.

[Mike9241]

what type of entity owned the building and equipment when it was a restaurant - a single member LLC/sole proprietorship (schedule C), S-corp, C-corp, or partnership? 

[chilibean42]

S-Corp

[RobertB4444]

If you were the sole member of the S-corp I would just transfer all of the assets over to schedule E and lease them as rental property there.  The depreciable basis carries over so all of the items that were fully depreciated still are and anything that is not only has the basis left that it had when you closed the corporation.  Then you are just running a schedule E short term rental of your property and equipment.

@chilibean42