- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Yes, you need to fix that.
Assuming you set the holding company up in 2022, you need to "dispose" of the properties on your personal return as of the date the holding company took over. You will dispose of the property at your basis (or value - so no gain or loss) and contribute it to the holding company at the same basis. This should give you 2 pages of Schedule E (since rentals are reported on a different page than K-1 income) and not 2 actual Schedule Es.
If you set the holding company up prior to 2022, you will need to go back and amend 2021 returns to reflect the holding company setup and ownership of the properties correctly. Also, if this is the case, you may want to seek help from a tax professional in your area to assure yourself you get it all set right.
**Mark the post that answers your question by clicking on "Mark as Best Answer"