PatriciaV
Expert Alumni

Get your taxes done using TurboTax

Thanks for the additional information.

 

First, you'll need to set up new properties on your personal tax return for any that were held by the LLC and whose activity was reported to you on Schedule K-1. When you took control of the properties from the LLC, the basis (including accumulated depreciation) was passed to you as well. Therefore, continue to depreciate those properties as you did for the LLC. If you've already done that for 2016, then your 2016 tax return was correct.

 

For 2017, add any rentals that were placed into service during the year. You will begin taking depreciation as of the date you first made the property available to be rented. If this is how you reported the new rental properties, then your 2017 tax return is correct.

 

There is no depreciation deduction for properties that are not being used as as rental or commercial properties.

 

As a point of information, the only way to correct depreciation from a prior year is to file an amended return.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"