how to record transfer of rental prop to llc (sch e to 1065)

bobf5 · ‎January 28, 2025

i live in Fl and the two equal members of the new llc are my wife and i. how do i make this change without having turbo tax show the sale as a taxable event as it was a pure non cash, non taxable transfer to the LLC . any help would be great because as of now TT is saying i have a taxable gain from the sale on the individual tax return. not sure how to record life to date depreciation on both sides of the event (sch E and the 1065).

RobertB4444 · ‎January 28, 2025

An LLC is a disregarded entity so you don't need to transfer the property to a 1065. Since you and your spouse own the LLC in its entirety you can file the property on schedule E just as you always have.

@bobf5

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