Property transfer to LLC - Tax implications for depreciation

[Nick G.]

In the following example: 

1) I bought a rental property in 2011 for $100,000 which has been fully rented since.

2) I transfered the property from myself to a single-member (myself) LLC in June 2017. The "sale" price was $1. The property was appraised at $150,000 at the time of LLC formation.

Determining depreciation before LLC formation was straight forward. How is this done for the LLC? Do I use the orriginal sale price that I, as an individual, bought it for? Sould depreciation for the property in the LLC start whan the property was transfered to the LLC?

[John Smeltzer]

You should consult your Tax Advisor but the transfer to the LLC should be disregarded for tax purposes since the transfer is to a disregarded entity (essentially a transfer to yourself). You would continue to depreciate the property as you did when you purchased it in 2011.