Rental Disposed To LLC - Special Treatment On 1040?
I purchased a rental property as a personal asset in the summer then disposed of it to an LLC this fall. The disposition was not a sale, it was a transfer to a "related person" and, of course, did not involve a sale price. I am mildly concerned because I cannot see how this would be noted on the 1040. To an outsider, it may appear that I sold an asset at a total loss, which is nonsenseical. Is there a proper way to handle this situation? Thanks.
I would think that the transfer of your rental property to your LLC would be treated as a tax free contribution at your basis cost.