When you transfer properties between individuals - or between individuals and LLCs - it counts as a sale. The LLC receives the value of the property and you receive an interest in the LLC equal to the value of the property.
You need to show this as a disposal in order to remove the rentals from your tax return. You can show it as a sale or transfer at the exact value that the properties currently have so that there is no gain or loss.
The IRS is looking for those properties on your tax return so this is how you inform them that they will no longer be there.
@hobbycheesemaker
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