Solved

Rental Property Conversion to LLC

Forum|Forum|7 years ago
June 6, 2019
4 replies
0 views

Hello - I converted a rental property from personal ownership into an LLC this year. It has a number of depreciable assets (appliances, etc.) that are 2-3 years in service, and about a $26K passive loss carry forward. How do I convert the rental property in Turbotax from personal rental to LLC? There appears to be a place to show the $26K passive loss carry forward on the new business screen, but all options on depreciation are for a newly purchased asset which would start the depreciation clock over again. It has a separate EIN, so doesn't seem appropriate to keep it in the "Rental" category.

TurboTax Home & Biz Mac

Best answer by Critter

Well then guess what ... since it is a disregarded entity you don't have to change anything ... it will be reported on the Sch E of your personal tax return just like normal. That new EIN is connected to your SS# and the IRS will expect it to be on your personal return.

Critter

Employee

Is this a single member LLC ? Did you make the corporation election ?

L

Lee8Author

Yes, single member. It's the default "disregarded entity" - no corporation election.

CritterAnswer

Employee

Well then guess what ... since it is a disregarded entity you don't have to change anything ... it will be reported on the Sch E of your personal tax return just like normal. That new EIN is connected to your SS# and the IRS will expect it to be on your personal return.