Thanks Alicia for your detailed reply
Couple of questions
In tell us why you stopped using this asset, Should I say townhome was Sold even though it was not really sold but went back to one of the partners. I did mark it as sold, but it comes out to a zero gain for each property
My understanding is that we need to have an explanation sheet with the 1065 stating that each property is being transitioned to one partner and going forward they will take over the depreciation schedule for that property. Similarly an explanation sheet with the new tax return saying depreciation is being taken over from the previous LLC account.
The 1065 is generating form 4797 even though no actual sale took place. I assume this is ok as will be explained in the cover sheet with the 1065 tax return.
My understanding is also that on the new tax return for each member, Turbo tax may not allow us to use a Placed in Service date before the LLC start date and I will need to use the forms to update the placed in service date instead of in the step by step
Thanks again for your help with this
