Thanks. That is helpful. But making sure I understand. The K-1 on my my schedule E does not actually list specific properties. Just mu share of the income from a portfolio of properties in the LLC. So my 2021 schedule E will list income form the K-1 (for Q1) and income from the 2 properties that were transferred to me during the year (correct?).
For those two properties, I enter acquisition date of 4/1/2021 at the book value (purchase price minus prior depreciation) and start depreciation for a new 27.5 years (correct?).
This raised one question. The IRS will want its depreciation recapture tax if I ever sell. How do I capture the depreciation that happened before 4/1/2021 associated with this property? If I enter acquisition data 4/1/2021 and "date I started using this as a business" as 4/1/2021 I cannot enter prior depreciation anywhere. Obviously I do not want to create a taxable event and just transfer the partially depreciated asset from LLC to me personally.
