- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
Assuming you and your wife owned the properties and have always reported them on SCH E as a part of your personal tax return filed MFJ, there's nothing to "transfer" per-se. Since the change to a multi-member LLC where ownership of the properties does not change, you don't have a taxable transaction to report.
On the 1065 return, simply enter each property using the *same* *exact* information you used originally, when entering them in H&B 10 years ago.
You'll enter the same in-service date, same cost basis, same everything. Then, the program (not you) will compute all prior year's depreciation taken *for you*.
When done, the LLC will issue all owners (you and your wife only I presume) a K-1 which is entered on your personal 1040 joint tax return. The information from the K-1 will end up on page 2 of the SCH E in your personal 1040 joint tax return.