My wife and her sister own a rental (50% each). It was acquired in March, 2021. For 2021, we reported the income on Schedule E using Turbo Tax. Starting June 1, 2022, the property was placed in an LLC with my wife and her sister as equal shareholders. Our accountant is handling the K1's for the period from June 1 - December 31. He told us to use the actual income and expenses for the period January 1 - May 31 and the proportionate share of depreciation for that time period. I followed your advice and indicated a conversion to personal use on June 1, 2022. However, the expenses and depreciation come out wonky as it is reducing the actual amount of expenses and proportionate share of depreciation for the time period. What am doing wrong?
