There are a number of issues and additional information is needed:
- How many members in the old LLC
- What type of assets were in the old LLC
- fixed assets
- cash
- receivables
- inventory
- method of accounting
- Any liabilities in the old LLC transferred or all eliminated in bankruptcy?
- Was this a true bankruptcy
- Or just a business where the liabilities exceeded the assets and closed down; insolvent
- Was a form 982 filed for Oldco?
- Are the members the same in Newco LLC and Oldco LLC?
- Same ownership percentages
- Not sure I understand the 2 K-1's "original and liquidation LLC" these should be one and the same?
- At what point in time did these transactions occur; month, year, etc.
- This is a complex situation and while we may be able to provide some general guidance, it is best to consult with a tax professional so you can have a one on one as there are so many questions that need addressed and this type of a forum is not conducive or designed for this type of transaction
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.