All Forum Posts by: Mo Casa

Hi John, really appreciate the insight. 

So if i understand this correctly, if "John" has already claimed 100% bonus depreciation on the property before transferring it to the LLC, the adjusted tax basis for the LLC would be reduced to zero with no remaining tax basis on which the LLC could claim additional bonus depreciation? We would only qualify for regular depreciation.

Hi folks,

I'm exploring a scenario and would be grateful to hear some perspectives:

John is a member of Abc LLC that consists of four partners that own and operate real estate properties. John, as an individual, currently owns a rental property under his personal name that he intends to sell to the Abc LLC. It's worth noting that John has already claimed a 100% bonus depreciation on this property in 2022. If John were to transfer the property deed to the Abc LLC (an entity he still belongs too), would this type of transaction allow the other three partners of the Abc LLC, apart from John, to benefit from bonus depreciation on the property for the current year (2023)?

Of course, assuming each individual meets the general requirements of the bonus depreciation program (e.g., active material participants).

Thanks in advance!