A client transferred assets from their personal return to an LLC. Should fully depreciated assets be removed from the balance sheet? The largest asset is the apartment building which was purchased in 1988 and is now fully depreciated.
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If and when the property is sold in the LLC, the books should show original purchase price and depreciation for whoever is handling the LLC at time of sale. I say keep it on the books. I'm sure there are other good reasons also.This post is for discussion purposes only and should be verified with other sources before actual use.
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If they qualify for 199A but don't have wages, the unadjusted assets will help in that calculation.Comment
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If it is a single-member LLC, I agree with Lion as usual. If he LLC has elected a partnership or something else, that leads to a whole other discussion about FMV,, inside/outside basis etc.Comment
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I also need to add: Over the lifetime of the building, capital improvements will be added and maintaining basis will be important.This post is for discussion purposes only and should be verified with other sources before actual use.
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