Question
passive loss carryovers from rental properties moved over to a multiple member LLC
Good Morning,
I have a client who owns several rental properties with his brother in law. They each reported 50% of the rental activities on a schedule E - NO Partnership - they each just took 50%.
Fast forward to a week ago, and client called and told me they formed an LLC (Partnership) last April (thanks for the late notice, lol), so I prepared the LLC/1065.
My question is this - how do I make sure in PS that I keep the passive losses from when the rentals were reported as rental activity on sch E in prior years - I believe client is selling one of the properties as soon as he can dump it, and I want to make sure that I enter this correctly so that when that property is sold (in the partnership) his prior year unallowed losses will be released.
Thanks for your help.
