Thanks for the additional details:
- There is Revenue Ruling 99-6 that provides some guidance for your potential transaction (assumes the current LLC is taxed as a partnership).
- Based on the Ruling, the existing LLC terminates when you acquire the interest and will file a final tax return.
- As a result, you will now own the assets of the old LLC and you need to determine what structure you want to own those assets; individually, single-member LLC, etc. This will be a completely new structure requiring filings with your state and also a new federal EIN.
- Since you are not a member of the current LLC, the accounting method question becomes moot.
- Both parties will need to complete form 8594 which provides details on the allocation of the purchase price.
- This is a complicated transaction and I strongly advise you to get a tax professional involved before you consummate the 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.
