Here’s how to handle the depreciation:
Calculate your basis in the property before the transfer. This should be easy if you have last year's depreciation schedule. If you don't, the formula for calculating the basis is:
Purchase price
Plus: selling expense/other adj
Less: Depreciation
Adjusted Basis
Use this as your new basis for the property on Form 1065. The transfer date in 2024 will be the purchase date.
