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    Rental Property

    Client has rental property that was reported on the Schedule E and Form 1040. Now the client moves the property to a partnership. Does the partnership continue depreciating the property as the partners (HW) had been depreciating before on the 1040?

    #2
    Originally posted by Florida_EA View Post
    Client has rental property that was reported on the Schedule E and Form 1040. Now the client moves the property to a partnership. Does the partnership continue depreciating the property as the partners (HW) had been depreciating before on the 1040?
    Yes, as long as it's only shifting from E to 1065 and not due to change of ownership.

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      #3
      Originally posted by kathyc2 View Post
      Yes, as long as it's only shifting from E to 1065 and not due to change of ownership.
      Be careful about rental property with a mortgage transferred from individual ownership to a partnership. The partners basis is generally reduced by the liability of the mortgage! There are other issues as well that may cause the partner to realize a gain when property with a liability is transferred in to the partnership.
      Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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