We have an LLC owned by 4 people equally. Two of them sold their shares to the remaining two, effective 12/31/2024. Should Item J of Schedule K1 Part III be populated as follows?
For the selling S/H:
Beginning Ending
Profit 25% 0%
Loss 25% 0%
Capital 25% 25%
For the buying S/H:
Beginning Ending
Profit 25% 50%
Loss 25% 50%
Capital 25% 25%
Turbo Tax didn't seem to go through this. It only asked if there was an ownership change - yes/no; had a checkbox for whether the member left the company this year, whether there were more than one date of ownership change in 2024 - yes/no; and what the ownership change date was - 12/31/24.
Turbo Tax populated all four K1s to show 25% in all fields for all 4 members with "final" checked for the two exiting members. Is this accurate? Or should the K1s be updated as shown above or differently?
