Hope that clears the confusion.
Yes, a bit.
For the new LLC, you have to reduce the cost basis of all assets by the amount of depreciation already taken on those assets. Then depreciation starts all over from year 1 for the next 27.5 years using the new cost basis. Note that the cost basis of the land will not change, since land is not depreciated. Example:
Property purchased 2005 for $100,000.
Property placed "in service" in 2008 allocating $20,000 to the land and $80,000 to the structure.
In 2021 $40,000 of depreciation is already taken on the structure when it's transferred to a new business with the same owner(s). So for the new business the cost basis of the structure must be reduced by the $40,000 of depreciation already taken on it, and it's in service date will be the date the new business acquired the property. So for new business:
Land cost basis: $20,000
Structure cost basis: $40,000
The structure gets depreciated over the next 27.5 years based on the reduced cost basis.
Now, when you sell the structure it's up to you to remember the $40,000 of depreciation already taken on the property, so that it's properly recaptured and taxed in the year you sell the property.
Now for the details of how you deal with this on the K-1's as far a partner contributions and partner share goes, I'm a bit sketchy on that. There are other's that I'm sure are following this thread who are better versed in that arena, if you need more detailed assistance with that.
