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.
You'll need to sign in or create an account to connect with an expert.
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?
S-Corp
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.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
rogernsd
New Member
dmwessner
New Member
obeteta
New Member
NeUnhappy
New Member
bruced63
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.