Move rental property from Schedule E to Form 1065
Hi there!
My wife and I used to have a rental property in our own name and reported it via Schedule E on our personal tax return for a few years. It was also reported on Form 4562 when it was originally acquired, so we can have the proper depreciation schedule. Last year the property was moved to the partnership LLC (two partners, me and my wife), so I'll be reporting it via Form 1065 and individual K-1's this year (TurboTax Business).
I need your help in figuring out how to properly make that transition since it was mid-year when the property was moved to the LLC.
1) Do I need to report that property on Form 4562 for the LLC, or how do I start depreciating it via TurboTax Business? I haven't found any other way but to add it as a new asset that would be added to the form. Also, do I use the cost basis that was used when the property was purchased, or do I need to recalculate it for 2021?
2) What should I do with the rest of the property's income and expenses that were last year? Should I simply report everything before it was moved to the LLC on my personal Schedule E and the rest via Form 1065?
3) How do I mark that the property was moved to an LLC in my personal tax return? Do I need to do anything special about that, so TurboTax knows that it needs to only take a certain depreciation last year rather than the full amount?
Sorry, there are a lot of questions, I hope this awesome community will help me out.
Thank you in advance,
Alex
