Asset distribution from one LLC to another LLC with same members. Where in turbo tax business to enter. Manually add onto K1? How to answer asset disposition?

Some follow-up questions:
1) Is the one LLC liquidating or will it continue on?
2) Are we talking one asset or multiple assets?
3) Any of the assets being "transferred" contributed by an existing member?
4) Exactly same member ownership in each LLC?
5) Are the member's maintaining a tax basis schedule?

1. One liquidating LLC was sold prior year less the property. Just trying to do final close out of the llc
2. One asset
3. No, asset was bought directly by llc
4. Yes, Same members own both llc
5. Yes, in both old and new llc's.
Again thanks for any help.

Thanks for the helpful follow-up responses.

Having just one asset being distributed to multiple members may lead to an odd result, but here goes:

• When an asset is liquidated to a member, the asset will take what is called a "substituted" basis.  By way of example if a member has an outside tax basis of $2,000 and the adjusted basis of the asset being distributed to the member is $1,500, then the substituted basis of the asset is now the $2,000.
• There is no recapture when the asset is distributed as the member will step into the responsibility of any depreciation recapture upon eventual disposition.
• Following through on the example above, the member will step into the shoes of the distributed asset depreciation method and remaining life up to the assets adjusted basis before distribution ($1,500 in this case) and any excess basis ($500 in this case) is a new asset.
• Generally when you contribute an asset to a partnership (LLC being taxed as a partnership) you need to consider what is know as Section 704(c).  However, since all former members will take an interest in the asset and in turn contribute it to the new LLC, this really does not come into play.
• The same would apply to any built in gain.  Not an issue for the same reason as the Section 704(c) discussion.

I have a similar situation.  An LLC filed for bankruptcy and so was terminated.  A new LLC was established with all of the assets and members moved to the new LLC.  A cost basis for the transfer was established.  I now have 2 Schedule K1s (Form 1065): One for the original showing 0% Capital at ending; and one for the Liquidation LLC .  The original shows a withdrawal & distribution amount that went into the Liquidated LLC.  How do I show disposition of the original LLC?