How do I reflect the transfer of assets (from an s corp to an llc) on my final return?

[RayW1 · Accepted solution]

The basis in the S-corp is a distribution to yourself.  You have basis in the LLC equal to the basis of the distribution for the contribution to the LLC.  This assumes you are the sole owner of both entities.

If you do not own both entities, the transaction is a sale of a business asset reflected on form 4797.