LLC transfer on schedule C

[bdoubleu]

I started an LLC for my son when he was 16 in my name. He just graduated college and I transferred it to his name Jan 1 2025 using Form 8822-B and using Indiana INBiz portal for the LLC itself. That's all done. 

I just want to make sure I'm doing this correctly in TurboTax. I've answered the questions that I've transferred this business for $0. I also checked the box that it had less than $20k in assets and value. Which is true. If I do the math he probably has around $10k in equipment and if he tried to truly sell it, he'd get zero buyers other than he could clear the equipment for $10k and that's it.

He had a couple assets that were still depreciating. I'd really like to just zero that out, but it seems like TT guided me to take a last year depreciation, even though I wasn't doing anything with this business or assets in 2025.

Any help would be appreciated. Anything else I might want to check to make sure I close this out properly? I haven't looked at the schedule C in depth yet, I've just answered the TT questions.

[Hi Palms]

That's right because your son would take your basis for the equipment including accumulated depreciation.

[bdoubleu]

what is the correct way to not take this depreciation in TT for 2025?

[Hi Palms]

There is not a correct way because depreciation is mandatory in the sense that it will be recovered when the asset is sold whether deductions have been taken or not.

[Mike9241]

you made a gift to him which seems to be below the threshold of $19,000 for filing a gift tax return. TurboTax does not do gift tax returns. with gifts there is nothing to report on either of your 1040s. he does take over your tax basis and is responsible for depreciation recapture that both you and he took upon disposition of the asset if sold for more than its reduced basis due to depreciation