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Investors & landlords
On the SCH E convert the property and all it's assets to personal use, effective one day before it's transferred to the partnership. This takes the property out of service and stops depreciation on that date.
When entering in the 1065 Partnership returns, you will need to adjust the cost basis of the structure and any other depreciable assets, by the depreciation already taken on your personal return. Note that since land is not a depreciated asset, the value of the land will not change.
If you're not knowledgeable on this, seek professional help. Doing things wrong, can (and will) cost you dearly down the road; most likely in the year you sell the property. Especially if your state also taxes personal income.
‎December 3, 2022
4:44 PM