I have a single member LLC that owns 2 rental properties. I acquired the LLC through inheritance in June of 2023. For many years before that, my grandmother owned the LLC with the same 2 rental properties. During that time, the CPA combined the 2 properties as 1 asset for the purposes of income, expenses and depreciation. In 2023, the CPA again combined the 2 properties as 1 asset for the purposes of income, expenses and depreciation after taking into account the stepped-up basis. I used the CPA's report when preparing my 2023 taxes using Turbo-Tax. In late 2024, 1 of the units was transferred from the LLC to me personally and I began using it as my primary residence. I am trying to figure out how to enter all this on my taxes for 2024. I have good numbers for income and expenses for each unit. But how do I deal with the reduced depreciation that applies from the time 1 of the units was transferred out of the LLC? None of the situations in the "Do Any of These Situations Apply to This Property?" screen seem to apply. We do know the stepped-up basis for each property as of June, 2023 when I acquired the LLC. I am thinking I need to go back to that date and create a separate depreciation schedule for each unit. I could then calculate the correct depreciation for the months the LLC owned both units and the months it only owned 1 unit. Is that correct? If so, how do I use Turbo-Tax to report this?
