Good afternoon TurboTax Community:
Last year, 2022, we transferred a couple of rental properties to two LLCs. One of the LLCs was established in January and the other in March.
- There was no sale, just a transfer. We understand there is no tax implication. Would you help us confirm?
We have been depreciating both properties on Sch E but for 2022 we understand we need to begin using form 8825 instead of Sch E and a couple of questions came up regarding depreciation:
- For the LLC established in January, all income was reported under the LLC. Do we report the depreciation amount on 8825 as we have done on Sch E? Is there a statement that we need to attach to the form for the IRS to know that the property was on Sch E and now is on 8825?
- For the LLC established in March, 1/4 of the income was reported to us and 3/4 was reported under the LLC. We have to file a Sch E for the portion of income reported under us. What amount do we report for depreciation? A 1/4 of what have been reporting in our Sch E for prior years and the other 3/4 under 8825?
Thank you for your help!
