I have a rather complicated (to me anyway) question about the sale of a business which I was a LLC partner in.
I started the business in the early 2000's. Around 2009 I sold 51% of the business to a partner. The original entailed the creation of a completely new LLC with the old LLC being dissolved. The partner paid me cash for the 51% of the old business and I contributed my remaining 49% to the new LLC (value pegged at the valuation of the business in 2009). This contribution was noted and tracked in my capital account in the new LLC.
I paid taxes on the money I received in 2009 for the 51% as a long term capital gain (I had held the LLC since around year 2000.
Fast forward to early 2018. Another company bought 100% of the LLC that was created in 2009. I was paid in cash again for my remaining 49% which had risen in value since the deal in 2009. When I did my taxes, I paid capital gains on what I received in cash in 2018 minus the value in my LLC capital account (which I looked at as my cost basis in the new LLC).
Does this all sound correct?
