TT Home and Business -> TT Business Depreciation

[InnovateMoore]

I have 3 rentals I've been handling in Turbo Tax Home and Business for a decade.  I just moved them into an LLC and need to move to Turbo Tax Business.   Is there a way to move the depreciation schedules from TT Home and Business to TT Business? 

Thanks, Andrew

[tagteam]

---

@InnovateMoore wrote:

Is there a way to move the depreciation schedules from TT Home and Business to TT Business? 

---

No, the depreciation schedules cannot be transferred from Home & Business to TurboTax Business; you have to enter the information manually.

Is this a multi-member LLC? Single-member LLCs are generally disregarded for federal income tax purposes and report on Form 1040 (Schedule E or C).

[InnovateMoore]

It is a multi-member LLC with 2 members, my wife and me.

[tagteam]

---

@InnovateMoore wrote:

It is a multi-member LLC with 2 members, my wife and me.

---

Do you own the property as community property in a community property state?

If not, then you have no alternative other than to file a 1065.

[InnovateMoore]

We are in Colorado, which is not a community property state.  We own all of our properties together, the LLC is a 50/50 membership, and we file a joint tax return.  

I can't find a way in TT business to create the proper depreciation schedule.  Since the properties have been partially depreciated, I want to pick up the depreciation where I left off in TT Home and Business.  

TT Business won't let me create a schedule that starts before the founding of the LLC (1/1/22).  

Not sure what to do.

Andrew

[Carl]

Assuming you and your wife owned the properties and have always reported them on SCH E as a part of your personal tax return filed MFJ, there's nothing to "transfer" per-se.  Since the change to a multi-member LLC where ownership of the properties does not change, you don't have a taxable transaction to report.

On the 1065 return, simply enter each property using the *same* *exact* information you used originally, when entering them in H&B 10 years ago.

You'll enter the same in-service date, same cost basis, same everything. Then, the program (not you) will compute all prior year's depreciation taken *for you*.

When done, the LLC will issue all owners (you and your wife only I presume) a K-1 which is entered on your personal 1040 joint tax return. The information from the K-1 will end up on page 2 of the SCH E in your personal 1040 joint tax return.

[InnovateMoore]

Thanks, Carl.  All of your assumptions are correct. 

The issue I have now is that TT Business will not let me enter the correct service date (2/28/13) only the date the LLC was formed (1/1/23).   I can edit the depreciation schedule to get the depreciation correct, it just runs long for 27.5 years when it really only needs to go 17.5 years.   

Andrew

[Carl]

TT Business will not let me enter the correct service date (2/28/13) only the date the LLC was formed (1/1/23).

That's because a business can not have possibly possessed assets, before the business existed. That's like if you were born in 1965 and someone asks for your baby pictures from 1961. Not gonna happen.

Because the transfer from your 1040 tax return to the 1065 tax return is not a taxable transaction, your business start date must be on or before the asset in service date. So change your business start date accordingly, and it'll all work out fine. Since there is no change in the "people" that own the property, this is not a problem.