Randall Posted March 31, 2016 Report Share Posted March 31, 2016 Two brothers owned rentals, reported half each on Sch E. Formed an LLC, transferred property to LLC. My understanding is that the assets and depreciation just continue from their original depreciation schedules. But I can't 'quickly' find verification of that. I don't think the LLC starts over with previous NBV. Just looking for some reference. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 31, 2016 Report Share Posted March 31, 2016 continue with same depr schedule 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 31, 2016 Report Share Posted March 31, 2016 Agree with Michael. Nonauthoritative, but pub 946, page 47, see "Property Acquired in a Nontaxable Transfer". 2 Quote Link to comment Share on other sites More sharing options...
Randall Posted March 31, 2016 Author Report Share Posted March 31, 2016 Thanks. I agree but was racking my brain to find where it actually says so. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 1, 2016 Report Share Posted April 1, 2016 You must depreciate MACRS property acquired by a corporation or partnership in certain nontaxable transfers over the property's remaining recovery period in the transferor's hands, as if the transfer had not occurred. You must continue to use the same depreciation method and convention as the transferor. You can depreciate the part of the property's basis that exceeds its carryover basis (the transferor's adjusted basis in the property) as newly purchased MACRS property. Quote Link to comment Share on other sites More sharing options...
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