I have owned a rental property in Texas under my name since 2018, and I have been including it in my individual tax return using Schedule E (Form 1040) with TurboTax. Recently, I formed an LLC in Texas with my wife and I'm considering transferring the rental property from myself to this LLC. In Texas, when an LLC has both spouses as members, it is treated as a single member LLC or a disregarded entity.
Considering the information above, I have several questions regarding the tax implications and complexities when I file my return in 2024 for the year 2023:
Does TurboTax provide a provision to facilitate this switch? I'm particularly concerned about handling the depreciation aspect.
What challenges might arise during this process?
How can I plan ahead to smoothly execute this change within TurboTax?
I have been using TurboTax for my tax returns for more than 15 years, and I prefer to continue using it rather than working through a CPA for my taxes next year.
Please help.
Regards
Sangeet
