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New Member
posted Jun 3, 2019 1:31:29 PM

After transferring a rental property into an LLC (single member) via a Quit-Claim deed, is it reported in the "Rental Properties" section or as an LLC "business asset"?

I transferred one of my rental properties into an LLC using a Quitclaim Deed mid-year. Do I continue to record all rental-property-related income and expenses the same way that I did before the transfer (by inputting them under my rental properties in TurboTax Premier), or should I indicate the property has been "sold" under the rental property section in TurboTax Premier and begin inputting it as a business asset of the LLC? 

Likewise, now that the property has been officially transferred to the LLC, do I issue 1099-MISC from my personal SSN/Tax ID or the LLC's EIN?

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1 Best answer
Level 15
Jun 3, 2019 1:31:31 PM

If the LLC is not incorporated then the rental continues to be reported on the Sch E ... it is a disregarded entity so nothing changes. All you did was a legal name change which is not reported on an income tax return.

2 Replies
Level 9
Jun 3, 2019 1:31:30 PM

Just a word of caution:  If the property has a mortgage on it, the bank may not allow the title change, and you may have triggered the entire amount of mortgage to be due.

Level 15
Jun 3, 2019 1:31:31 PM

If the LLC is not incorporated then the rental continues to be reported on the Sch E ... it is a disregarded entity so nothing changes. All you did was a legal name change which is not reported on an income tax return.