Business Tax

Forum|Forum|2 years ago
March 15, 2024
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My wife and QC'd our rental properties to our LLC, one in June and another in August. i know we have to do form 1065, however when doing our taxes it asked did we own the property 365? Do we put the timeframe up to the change or does it matter?

PatriciaV

Employee

On your personal 1040 return, enter the number of days you personally held and rented the property (before the transfer).

When you are working on the business return, answer all questions from the business perspective. Since you transferred the property to the LLC in June/August, the LLC did not own the property all year. Enter the actual number of days the property was held and rented by the LLC.

The total days rented should be the sum of the 1040 days and the 1065 days.

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