More than 50% change of ownership in my LLC in 2024

[CharlesOConnell]

I had a change of ownership with the following changes: 

1.  Members divested (sold their interest back to the LLC)

2.  one of the members purchased 65% of the total equity in the company

3.  Turbo tax advises that if more than a 50% ownership change occurs, the LLC must file a "final" return, then file a new one with the new ownership structure

4.  How do you do that in Turbo Tax? 

[RobertB4444]

You don't have to do that.  The system is recommending that you do the final return and then the new return because when a greater than 50% ownership change occurs it is known as a 'technical termination'.  Before 2017 anyone involved in a technical termination was required to do the new tax return thing.  That requirement is no longer in effect.  So you can skip it if you like.

Your new 65% owner partner may prefer to have the returns separating the 'before and after' however.  So if you choose to do it then you will mark the business as terminating in 2024 and file it's final return.  Set the date of the termination as the change of ownership date.

Then create a new business with all of the exact same asset information as the original one.  This business will have a start date of the same date as the ownership change.  

It may be easier to just do the ownership change inside the one return.  But it's up to you.

@CharlesOConnell 

[AmeliesUncle]

In other words, TurboTax hasn't updated the program since 2017.  Are you sure you want to be using a program that is using severely outdated information?