topic Re: Rental Property in Investors & landlords

Rental Property

figment — Wed, 11 Feb 2026 10:05:29 GMT

We transferred a rental property in New Jersey that has been depreciated over the years to an LLC. Would the net depreciated value of the property to added to the LLC or would the current market value of the property less the accumulated depreciation to date be added to the LLC? Also, please confirm that the partners in the LLC would have to report their share of income based on their capital contribution percentage at the end of each year and not when the funds are actually distributed as cash. Thanks.

Re: Rental Property

M-MTax — Sun, 28 Jul 2024 17:52:38 GMT

The LLC takes the adjusted basis.......it doesn't change when the property is contributed to the LLC.

Maybe a different result if all of the current owners of the rental are not also members of the LLC.

Re: Rental Property

M-MTax — Sun, 28 Jul 2024 17:53:07 GMT

report their share of income based on their capital contribution percentage

That is the default.