I have several rental houses. They were in a multi-member LLC for several years but in 2020 I transferred the properties from the LLC to me, and then from me into a different multi-member LLC of which I own 99%. How do I handle the depreciation? The properties had been depreciated for many years in the original LLC. There was no sale or purchase - just a quitclaim deed from the first LLC to me and then another quitclaim deed from me into the second LLC. In the new LLC, should I just continue the depreciation schedule from the first LLC (as though no transfer had occurred)? Or does the depreciation schedule start over because I transferred the properties into a new LLC?
The old LLC remains, and will now be a property management company that does not own any properties but provides property management services for the new LLC.
So, with regards to TurboTax, what this question means is: should I start the TurboTax file for the new LLC by making a copy of the old LLC so I can just continue the depreciation schedules as before, or for the new LLC should I start a new TurboTax file from scratch with completely new depreciation schedules?
And one other question is how to stop the depreciation schedules on the tax return for the old LLC? In TurboTax, how do I tell TurboTax that the LLC doesn't own those properties anymore (but without calling it a sale)?
