Selling rental property, but our LLC will be retaining tools and equipment that were listed on the property's Form 8825

Forum|Forum|3 years ago
March 16, 2023
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We are selling a rental property owned by our LLC. After it is sold, the 1065 Partnership will be retaining tools and equipment that were purchased over the years and listed on this particular property's Form 8825 (Rental Real Estate and Expenses). This was mainly because we did not know where else to put them. Of course, the appliances, and depreciable items related directly to the building will be sold with it and accounted for after the sale. The Partnership will still be generating income from investments and will be considering purchasing another property eventually. We guess the real question is how to move the retained tools and equipment to the LLC without incurring a taxable event? We use Turbo Tax Business. Thanks

TurboTax Business Windows

RobertB4444

if the tools are fully depreciated then it isn't any worry. Remove the asset along with the rental house and just enter any gain if they are ever sold.

If the tools still have a depreciable life left then dispose of them in a separate sale from the property for the exact amount that they have left in value. Then create a completely new asset that is identical to the one that you disposed of and attach it to the LLC itself instead of the property.

@john9-9

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