i created an LLC for two rental prop that use to be on sch E how do i record six months on sch e and 6 months 1065

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).

1331

Expert Alumni

Jan 28, 2025 10:31:02 AM

An LLC is a disregarded entity. Since you and your wife are the joint owners of the LLC AND the property you can simply leave it on the tax return in schedule E. You don't need to transfer it at all.

@bobf5

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i created an LLC for two rental prop that use to be on sch E how do i record six months on sch e and 6 months 1065