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Updated almost 7 years ago,
How to claim depreciation after Quitclaim a property to an LLC?
Hello
I have been listening to a lot of podcasts that talks about doing a Quitclaim Deed to transfer a property from personal name to an LLC for asset protection purposes. I am interested in doing it, however, I am concerned about depreciation.
My CPA said that I can depreciate a rental property in 27.5 years. This depreciation helps me lowering my taxable income from W2. A lot of savvy investors seems to be able to write off all of the property depreciation against their taxable income. So at the end of the day, they would pay $0 for income tax. However, one question that has been going through my mind which I couldn't find an answer for is this: if I deed the property to an LLC, would the property then be on the LLC tax return? If so, how can I still depreciate the value of the property after I Quitclaim the property to an LLC? The purpose is to use depreciation to lower my taxable income.
Sorry for the noob question, thank you all in advance.
Yibing