LLC stock distributions at termination

[fcp3]

My wife and I are 50/50 members of an LLC that holds only a brokerage account.  We pay taxes yearly on the dividends, interest and capital gains via a K--1.

We will probably terminate it this year, and want to move the stocks and bonds out into our regular joint account.  We would not be selling anything.

Is this type of a distribution tax free?

The only thing happening is changing the ownership from our LLC to our joint account?  The current basis would remain unchanged.

Where does this appear on the 1065 and K-1?

[tagteam]

I'm going to page @Rick19744 for this but, generally, distributions not in excess of your basis are not taxable to you as a member. 

You clearly need to file a final 1065, regardless.

[fcp3]

Thanks

Yes I know of need for final 1065, but if we transfer stock with capital gain, do we have to pay capital gains tax, if we do not sell the stock.

From what I can find, stock is considered "money" but "investment partnerships" are exempt from the requirement that the "gain shall not be recognized to such partner, except to the extent that any money exceeds the adjusted basis of partner's interest immediately before the distribution"

Is the "Adjusted basis" here the cost basis of stock we bought decades ago or is it the value of the stock before distribution

OR since we are not selling stock there is no gain and no tax

BTW Anyone who can force TT Business in producing an accurate tax form with these issues is a genius. I certainly can't but will have to find a new CPA as my previous one passed away. 

I am trying to figure this out so I can move stuff before the end of the year

[tagteam]

Not in this instance; you will not recognize gain until you sell the shares.

Essentially, you have a carryover basis from the LLC.