Business was a 6 Member LLC. One Member sold his interest to the Company which was re-distributed to the remaining Members. I'm having three issues in how to make this transaction work in Turbo Tax (assuming my understanding of the flow in the 1065 is actually correct ...)
QUESTION 1: Selling Member now has negative ending capital and I need to re-distribute this to the remaining Members based on our current (post-buyout) ownership interests. How to do this in Turbo Tax?
QUESTION 2: Then we are making the 754/743(b) basis step-up election. I created a new asset as of the first day of the month immediately after the buyout month and checked the box for "Check if IRC Section 754 Adjustment". However, the selling partner is now receiving some 754 depreciation in the Box 13W. I wanted to make a Special Allocation for just the 754 depreciation to the 5 remaining Members based on our current (post-buyout) ownership interests, but not sure how to do this in Turbo Tax? It just defaults to giving everyone a share of it based on weighted average ownership throughout the year.
QUESTION 3: As a result of 754/743(b) need to step up each remaining Member's capital. So basically there is really no change in our capital as a result of the transaction (it goes down to absorb the negative ending capital from selling Member, and back up in same amount for the basis adjustment). How to do this in Turbo Tax?
