Holding Company LLC - Existing LLCs

[pljohns13]

Hey! 

History: 

We have a Coffee Roastery that has been operating under its own EIN for many years. That is a LLC (multi member) . I started a café in 2016 under another EIN and different name - Single Member LLC. It started to make sense to combine these so last year we created a new Holding Company LLC that owns the Roastery and Café. The intent is file one partnership return under the Holding Company. During the year these two entities operate and on December 31 we combine everything. 

The issue I am unsure of: I do not know how to account for everything on the balance sheet since these entities started before 2019 but trying to add fixed assets is confusing since they were in place before 2019. 

Does anyone have any advice of how to account for these? Is there something else I am missing? 

[MinhT1]

As I understand, the assets and liabilities of the 2 operating companies were contributed to the holding company, and the members of the 2 operating companies became members of the holding company.

It is not easy to advise without seeing all the legal documents and paperwork.

I would advise that you seek the advice of a local professional accountant to handle this matter.

[pljohns13]

Yep! The assets were contributed property. Do I worry about added them for Depreciation? Surely so since they are not fully depreciated but there does not seem to be a place to allocate already accumulated depreciation for these assets. TT won't let the asset add if it is before the formation date of the LLC. 

[ThomasM125]

If you set up a new company in TurboTax and indicate that it wasn't started in the current year, you can add an asset by entering the cost and year put into service and the accumulated depreciation. Turbo Tax will have enough information then to continue depreciating it as if you had entered the asset in the year put into service.

Otherwise, if the organization is new and it is taking ownership of the assets, then you should enter the basis of the assets, or fair market value, whichever is less, and start depreciating them from the current year forward based on their estimated useful life.