Discussion:Schedule E Real Estate Converted to LLC
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| Revision as of 17:59, 24 August 2009 Kevinh5 (Talk | contribs) (it continues the) ← Previous diff |
Revision as of 18:29, 24 August 2009 FLAcct (Talk | contribs) (Thanks, but then) Next diff → |
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| + | {{ForumReplyPost|UserID=FLAcct|Date=24 August 2009|Text=Thanks, but then is my journal entry correct? (In which case the balance sheet would not match the depreciation schedule.) Or should my journal entry be: debit Building at original cost; debit Land at original cost; credit Accumulated Depreciation per Sche E depre schedule; and credit Partner's Capital Accounts. This doesn't seem right to me.}} | ||
Revision as of 18:29, 24 August 2009
Discussion Forum Index --> Basic Tax Questions --> Schedule E Real Estate Converted to LLC
Discussion Forum Index --> Tax Questions --> Schedule E Real Estate Converted to LLC
| 24 August 2009 | |
| I have read the threads on this subject and just want to make sure I am doing this correctly. A married couple has been reporting a commercial rental property on Schedule E for several years. The beginning of 2008 they form an LLC and have the title of the property put in the name of the LLC. Because they live in a non-community property state, this means that a 1065 now has to be filed for this rental property. So now the entry on the 1065 balance sheet would be: debit Building for the cost of the building as shown on the Sch E depreciation schedule, less accumulated depreciation; debit Land for the original cost; and credit Partners' Capital Accounts for the sum of those two amounts. The building would then start depreciation over at the net book value carried forward from the Schedule E. Is this right? | |
| 24 August 2009 | |
| it continues the depreciation schedule already in place
it doesn't start depreciation over | |
| 24 August 2009 | |
| Thanks, but then is my journal entry correct? (In which case the balance sheet would not match the depreciation schedule.) Or should my journal entry be: debit Building at original cost; debit Land at original cost; credit Accumulated Depreciation per Sche E depre schedule; and credit Partner's Capital Accounts. This doesn't seem right to me. | |
