Do I need to recapture depreciation during transfer of property

Investor · Los Angeles, CA · Member since 2016 · 65 posts · 9 votes

Do I need to recapture depreciation if I am transferring title into an LLC and assuming a new mortgage (commercial loan) under that LLC. I am the sole owner of 3 Single Family Rentals and am transferring the title of each property into an LLC with 4 partners and establishing a new commercial mortgage for all properties under the LLC. As an individual, do I need to recapture depreciation on my taxes based on this transfer?

0 Reply

30 views

2 Replies

Jump to latestLatest

Sort by

Dale T.
Investor · Greeley, CO · Member since 2012 · 42 posts · 8 votes
8y
I am not a tax professional but from my experience in the past, my answer would be no. No taxable event has occurred
0 Reply
Logan AllecBusiness Member
Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
8y
@Drew Oberholtzer, just to get some more detail, is it correct that you will be contributing these properties into an LLC that is taxed as a partnership for federal income tax purposes in exchange for an interest in the LLC?
Clarita CPA Group516 Reviews
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.