Buying an LLC that owns real estate

[Galen Miller]

I'm under contract to purchase an apartment building in Ohio. I have the option to purchase the real estate or to form an LLC, transfer the property into it and purchase the newly formed LLC that owns the real estate. The primary motivations for purchasing an LLC that owns the real estate is to avoid the potential of a significant property tax increase and to eliminate conveyance fees. My question is whether this will this cause issues with setting up the purchase price as the cost basis and depreciating the property accordingly? I've seen some stuff online that suggests I might assume the previous owners depreciation schedule (which would be bad because they've owned it a long time). I also came across a 754 election which is one process for adjusting the cost basis to the purchase price. Any advice on this issue is greatly appreciated! Thanks!