I have an LLC used for real estate activities which include buying & selling properties and well as some buy and hold for rentals. I assume this single member LLC will need to be documented via schedule E as I do not qualify as a real estate professional.
My question is where do I record depreciable assets that are not linked to any single property? I purchased a tractor in 2022 to work on some vacant land i purchased to develop. In early 2023, I sold this same property but I kept the tractor to use on other properties. I will be able to depreciate 1/5 of the purchase price in 2022 if I link it to the vacant land, but in 2023 when I show selling that vacant land, how do I keep depreciating the tractor? Where do I capture this in Turbo Tax self employed?
Assuming you use SCH C for reporting the buying/selling of real estate that is not held for rental, the tractor would be a SCH C equipment asset depreciated over 5 years.
So my real estate LLC would be on schedule E AND schedule C? The vacant land was purchased to rent out but I never had any interest and ultimately sold it for a profit. The tractor was used to clear and maintain the property but it was also used on other properties that I bought and held to rent out. Those are all on schedule E. I just don't know how to add this tractor asset to Schedule E without attaching it to a single property.