USA Avoid Passive Losses | Two Related LLCs / Bought Condo

Jan 31, 2023
Reaction score
United States

I have a S-Corp, operating business, with $375k of profit.

We purchased a $450k industrial condo, with a $410k loan.

We had a Cost Seg. study performed and have $150k of bonus deprecation.

However, we had a separate LLC setup as a holding company to hold this property. The operating company exclusively / contractually is leasing this space until it is paid off.

When I went to enter the K1 of the holding company on 1040, I have now found... the losses are disallowed.

If the operating company bought the condo, it could depreciate the $150k.

Is there a way to get this $150k of depreciation into the mix in our 1040? The transaction is such related parties.

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question