Thank you so much for your answer and clarification. I have a follow up question changing the scenario a bit.
Instead of the rental properties being transferred(sold) to LLC now they will be listed in SCHEDULE C because services were rendered in 2024 vs before they were rental properties under SCH E.
I read the statement below in a and would love your input please! Basically how it should be done... SOLD or PERSONAL USE when properties did not change name in 2024.
"All assets (including the property itself) on SCH E are converted to personal use on a given date. ....When you enter the assets on the SCH C, you must reduce your cost basis in those assets by the amount of depreciation already taken. The "in service" date for the asset on the SCH C *MUST* be at least one day *AFTER* you converted it to personal use on the SCH E. Then the depreciation process starts all over from year one." LINK: Re: If you provide substantial services that are primarily fo...
Thank you
