Transfer of Sole proprietor depreciable assets to single member LLC

[GargoyleGrip]

I'm looking for information relating to transferring depreciable assets to a sole member LLC

For the tax year 2020 as a Sole Proprietor I owned depreciable assets which I rented to clients.

For 2021 I formed a single member LLC. 

I would like to transfer the depreciable assets to the LLC and begin billing rentals through the LLC.

These assets 

My questions

How does this transfer effect 2020 depreciation for my sole proprietorship taxes?

How does this transfer effect my 2021 depreciation for the LLC?

Are specific forms that necessary to make the transfer official?

[Anonymous_ · Accepted solution]

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@GargoyleGrip wrote:

I'm looking for information relating to transferring depreciable assets to a sole member LLC

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There is not much you need to do with respect to transferring since a single-member LLC (without an election to be treated as a corporation) is considered to be a disregarded entity for federal income tax purposes.

As a result, all of your depreciable assets will continue to be reported on Schedule C (the same as prior to the establishment of the LLC). 

It would be advisable to obtain an EIN from the IRS for the LLC, notify parties with whom you do business (such as insurance companies, et al), and, perhaps, re-title real estate, but you might also want to seek professional guidance (for legal and tax matters). Otherwise, there are no official federal income tax forms for single-member LLCs.