I have a rental property with a loss for 2018 which I need to carry over to 2019.I am doing quitclaim to put it on LLC.Can I apply my 2018 personal losses to LLC in 2019?

[arazi13]

Basically, is it possible to carry over my personal losses for this property and apply it in 2019 when this property will be on an LLC? The losses were very high, so I need to apply these loses in 2019. 

[DDollar]

Is your LLC a single member LLC?

[arazi13]

Hey, no, it is a partnership with another member. 50% me, 50% him

[DDollar]

No, the suspended losses do not transfer with the property.  According to the AICPA publication "The Tax Advisor"

Property contributed to a partnership may have related losses that were not deductible by the contributing partner because of statutory limitations. The losses could have been suspended because of the application of the at-risk rules or the passive activity rules. Any losses suspended by these provisions prior to the contribution of the related property/activity remain with the contributing partner and are not transferred to the partnership but are added to the transferor’s basis in the partnership interest (Prop. Regs. Sec. 1.465-67(b); Sec. 469(g)).

For more information on how to establish your basis in the LLC, see the following article:

https://www.thetaxadviser.com/issues/2014/apr/casestudy-apr2014-vm.html

[arazi13]

Hello,

Still little confused. Can I ask one question. For 2019 taxes, can I show the carry over loss for this property on my personal - just put expense amount on property? (because it's a carry over from when it wasn't on LLC in 2018).

And for the LLC show the profit/loss for 2019 activity?

Basically, carry over in my personal for 2018 old stuff, and LLC will just have 2019 activity. So this property will be inputted in 2 places (personal for carry over & LCC for 2019 related things).