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Level 2
posted Feb 26, 2021 3:19:52 PM

Multiple Partner LLC Sale of business

We had a multiple partner (4) LLC for our rental property, acquired in 2006, but converted in 2010 to the LLC. We sold the property in 2020. All partners have 25% interest. We have no other businesses or property. Does the basis start from when the property was originally purchased or from when it was transferred into the LLC? The owners were the same from the purchase in 2006 on. Do I check the box that the property/business now has new ownership? The LLC basically ended with the sale of the property in 2020. 

 

Thanks,

 

Sue Nell Phillips

0 3 303
3 Replies
Level 12
Feb 26, 2021 3:25:37 PM

Basis starts from when the property was purchased; the members contribute their share at their adjusted basis at the time of the contribution. If you're dissolving the LLC then you should mark the return as final.

 

 

Level 2
Feb 26, 2021 3:36:49 PM

Thank you! Do we need to file a 1099 general information form or a Form 8594?

Level 12
Feb 26, 2021 5:14:37 PM

Members get K-1s.....no need to file a 1099s and no need for an 8594 because the LLC is not selling or buying assets with goodwill or going concern value attached.