Allocate Depreciation between New LLC and personal return Sch E

Forum|Forum|2 years ago
September 12, 2023
1 reply
4 views

Hi,

Can any one please advise?

Husband and wife transferred rental properties to their new LLC in Oct 2022.

I am entering depreciation, thought should apply 9 months the depreciation to personal return, then 3 months on partnership.

First on personal return, how to let system know to stop as 10/1/2022 on personal return? Or you have to manually overwrite?

Second on Partnership return, the depreciation starts at 10/1/2022 , add accumulated depreciation to prior year, but the method is default at certain years, for example the building is 27.5, if it has been depreciated for 10 years, the remaining life is 17.5, how the system would know to stop?

Please help! Thanks!

ProConnect Tax

This topic has been closed for replies.

PhoebeRoberts

Intuit Community Champion

Split depreciation by asset, and manually override current year depreciation and AMT depreciation for each asset for both entities.

On the 1065, depreciation starts on the original placed in service date (tacked holding period applies), accumulated depreciation is whatever the ending on the 1040 is, method is whatever the 1040 used.

S

skyworksAuthor

Level 5

Thanks, it make sence and I have spilit the depreciations by asset between LLC and personal return.

But running into another issue, the balance sheet has much higher liability then the asset, I think it is result the rental appreciated, and the current Mortgage is much higer then the original property cost ( the partner has been refinance and used to buy other rental property).

So I have to plug in the variance called Loan to Partners (and other LLC they created).

Does this sound right?

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