How to transfer assets into an LLC...

AlaPreneurAlaPreneur subscriber Posts: 3
How would I go about transferring assets into an llc? I need to do this to take a tax deduction on it.. BUT what if I bought the thing about a year ago... and only now do I transfer it... would it be counted on the 2006 tax return?

Comments

  • VirtualCPAVirtualCPA subscriber Posts: 1
    It does not matter when you actually bought the asset. You would transfer it into the LLC using the FMV at the time you placed it "In Service". With (1) member LLC`s, this asset would be depreciated over it`s useful life on the Schedule C. Although if the business has made sufficient income throughout the year, you would be able to immediately expense it on your tax return (Section 179). However, in your particualar case you mentioned that the business did not have any sales in 2006. You probably should show this asset on your 2007 tax return since the depreciation will be offsetting income and your prior post mentioned that  you will not be required to file a 1040 for 2006 - due to having No income.   
  • AlaPreneurAlaPreneur subscriber Posts: 3
    I meant I am not required to file a personal 1040 cause I didnt work... but in terms of my LLC, I didnt make any money there either.So, given this, I am not required to file?
Sign In or Register to comment.