Transfer Depreciating Asset in Home and Business 2022 Desktop

Forum|Forum|3 years ago
February 18, 2023
1 reply
0 views

I have a laptop computer that I have depreciated (took full depreciation in year 1 under Section 179, but I have not reached the 5 year life) under an EIN for an LLC. I am going to be closing the LLC and want to transfer the asset to another business entity (different EIN). Both are listed in Turbotax Home and Business 2022 Desktop. Is there way to easily transfer the asset to the other entity without "selling and buying?"

MAK70

No, unfortunately, there is not an "easy" way to transfer an asset- the IRS requires you to use the fair market value as the sales price for the LLC so you can determine if there is gain an/or any income so that it can be included on the final LLC return. Then yo have to add the computer as an asset to the new company and use the same fair market value for the depreciation basis.