Hi,
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.
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.