I'm using Turbo Tax Home & Business and TT Business for the Multi Member (2) LLC. Business has been a Sole Proprietorship since 1998, but mid year 2016 I changed the entity to an LLC (new EIN and FL state LLC filed). I've always claimed a Home Office with Office equipment and depreciation using TT Home & Business.. I'm using TT Business to obtain my 1065/K1s, so it's not just as easy as making an entity change; I'm starting an LLC and Ending the SP. But all the Office Supplies need to move to the LLC.
The SP is not selling the Equipment, Not Gifting, Not Destroying, etc, etc, - the only thing I can see to do is convert them to Personal Use and then Contribute them as my portion of Capital Contribution to the LLC at FMV - while the 2nd member matches the amount with Cash.
Will this fly with the IRS or is there a better way?
Thank you!
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This is the correct way to get the old business assets into the new LLC. You will be considered to have contributed the FMV of both the office supplies and the office assets to the new business and will include the amount of these contributions as part of your capital contributions.
Please note that if you are expensing the supplies under your Schedule C, then they will have a zero "0" cost basis.
This is the correct way to get the old business assets into the new LLC. You will be considered to have contributed the FMV of both the office supplies and the office assets to the new business and will include the amount of these contributions as part of your capital contributions.
Please note that if you are expensing the supplies under your Schedule C, then they will have a zero "0" cost basis.
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