Question

Re: Moving Property to another LLC and transfer depreciation table

Forum|Forum|3 years ago
February 21, 2023
1 reply
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Hi,

I have a similar situation to the OP. I'm moving a property from one LLC to another preexisting LLC. Ownership of both is the same, my husband and I.

I think I'm getting the idea of how to do it, but one thing I'm wondering is: my end of service date is 12/31/22 for the property and assets, so I'mm assuming I will just add them to *next* years return for the receiving LLC?

Also, in TT Business '22 in the assets section "Tell us why you stopped using this asset" would I choose 'sold' for 0 amount, or 'disposed of by some other means?' Also, there is no "Special handling required?" option showing for me.

Any help greatly appreciated.

PatriciaV

Employee

Yes, add the assets to the receiving LLC as of January 1, per the instructions given earlier in this thread (essentially, new basis is net of accumulated depreciation as of 12/31).

Yes, choose "disposed of by some other means" for Tell Us Why You Stopped Using This Asset. TurboTax will show you the result of reporting the "disposal" in this manner - zero gain/loss.

As mentioned previously in this thread, be sure you save the historical depreciation information from the transferring LLC. You will need this if you sell these assets in the future.

@srrrrr

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S

srrrrrAuthor

Patricia,

Thanks so much for your wisdom!

Under 'Rental Real Estate Dispositions' I have marked all the assets as 'disposed of by some other means.'

TT is showing the "loss" of those assets as a 1231 loss and adding them to the K-1s, and presumably will show them as a gain when I input them into the other LLC as of Jan 1 next year. It seems like this is going to be a taxable event? What will be the implications here?

Thank you again!

R

RobertB4444

Adding assets to your LLC isn't a taxable event. Selling them is. So when you add them next year they will just show as assets added to the company. When you sell them there will be a gain or loss at that point.

@srrrrr

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