Contrary to @Carl comment, FMV of the house that you inherited is absolutely important and does matter.  You will need to know this figure when you eventually sell the house.   This does not impact your depreciation computation, as your mom's carry over basis (cost basis) will be used as noted above. However, when you sell the house, you will need to know the FMV of the house at the date of inheritance should it be sold at a loss.  This is key and you should determine this now while it is fairly "fresh", instead of trying to figure this out at a much later date. ... View more

Attached are the instructions for Sch E of the form 1040.  In particular review the instructions on page E-11 (line 28) for how to handle your interest expense.  If you follow the input and answer the TT questions appropriately, the software will handle this correctly.   https://www.irs.gov/pub/irs-pdf/i1040se.pdf ... View more

I don't have any experience with the "live" option. You indicate that you only have expenses.  You need to make sure that you can convince the IRS (should you win the audit lottery) that you actually have begun business even though you don't have income.  Having expenses and no income may be a red flag within the IRS. So having a discussion with a tax professional to build your support for actually having begun business will be key.  You need to have this information now and maintain it should you be asked to "prove" that you began your business. I am not sure that a "live" TT individual would provide that level of support; however, I honestly don't know that answer. ... View more

Based on your response: Since you are a multi-member LLC, there is not one product that will handle all your tax needs For your multi-member LLC, you will need to use TT Business.  This is only available as a download and only for windows environments.https://turbotax.intuit.com/small-business-taxes/  Make sure you download the correct product year.  Based on the limited information, you most likely do not have a 2018 form 1065 tax return filing since you did not begin business until 2019. Once you have completed the business return (form 1065) you will use the K-1's to complete your personal tax return (form 1040).  Check out the intuit home page to determine which product best suits your needs.  There are numerous options for both download and online. Multi-member LLC tax returns can be complicated, especially the initial year.  I would recommend that you consult with a tax professional at least for your initial year to get started on the right path and help you understand the nuances of partnership tax.   ... View more

You state the business is a partnership LLC. Is this a multi-member LLC? What state are you a resident of? ... View more

I believe we need to go into a little more depth here: When the property is converted to rental the basis for depreciation is the lower of the adjusted basis on the date of conversion or the Fair Market Value (FMV) of the property at the time of conversion. Generally the basis is the cost of the property plus the amounts paid for capital improvements. When the property is sold the basis is calculated differently for gain or loss. When the property is sold at a gain the basis is the original cost plus amounts paid for capital improvements, less any depreciation taken. When sold at a loss the starting point for the basis is the lower of property original cost or the FMV at the time it was converted from personal to rental property This is a confusing area, so just want to make sure the correct input figures are used for TT. ... View more

I believe the OP is referring to the 20% limitation. The 20% limitation applies to gifts of capital gain property to non-50% charities (e.g., most family-funded private foundations) . This 20% limit is applied after considering the 60%, 50%, and 30% limits (if any) for the tax year.  ... View more

I would add that you should send this form certified mail return receipt requested. ... View more

I agree with @HACKITOFF in that you need to amend your prior year tax returns. In addition, you need to make sure you understand the K-1 and in particular the presentation of Section L; the capital analysis. The capital analysis presentation is noted by which box is checked in that same section.   If this is anything other than tax basis, you will need to calculate your tax basis in order to determine your overall gain or loss. A negative ending capital account balance will only be treated as a gain if you have truly received distributions or took losses in excess of your tax capital account.  That would be unusual as (1) this is most likely a passive activity and losses limited to passive income, and (2) unlikely you would be at-risk for losses in excess of your tax basis. I also agree that it would be in your best interest to sit down with a tax professional to work through this matter. ... View more