Solved: Transferring a rental property to an LLC
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Level 2

Transferring a rental property to an LLC

My wife and I have owned a rental property for over 5 years.  Income and expenses were reported on a schedule E.  While doing estate planning, our attorney suggested we move the property to an LLC which was formed on 3/30/2020.  Since there were no liens (or debt), the attorney transferred the property to the LLC.  Based on the posts I read, this may have been a bad idea, but it's done and I need to report my earnings.

 

Do I just continue to report the income and expenses on the schedule E or do I need to create a new property affective 3/30 and close the old property?

 

Any help, guidance, or suggestions would be greatly appreciated.  

1 Best answer

Accepted Solutions
Level 10

Transferring a rental property to an LLC


@BrotherRick wrote:

And to clarify, it is a single member LLC.


 

For income tax purposes, a Single Member LLC is "disregarded" (assuming the LLC has not elected to be taxed as a corporation).

 

That means you report it exactly as if YOU owned it.  So yes, it goes on Schedule E and for income tax purposes can be reported as if nothing changed.

View solution in original post

5 Replies
Level 15

Transferring a rental property to an LLC

Unless you have to file a partnership return for the LLC  you can just leave the rental on your personal return Sch E like you have in the past. 

Level 2

Transferring a rental property to an LLC

Just to verify, I don't have to add a new property and close/end the one I've been using for years?

 

Thanks for the quick and very helpful response!

Level 2

Transferring a rental property to an LLC

And to clarify, it is a single member LLC.

Level 10

Transferring a rental property to an LLC


@BrotherRick wrote:

And to clarify, it is a single member LLC.


 

For income tax purposes, a Single Member LLC is "disregarded" (assuming the LLC has not elected to be taxed as a corporation).

 

That means you report it exactly as if YOU owned it.  So yes, it goes on Schedule E and for income tax purposes can be reported as if nothing changed.

View solution in original post

Level 2

Transferring a rental property to an LLC

Thank You!  I sincerely appreciate the prompt response.

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