PatriciaV
Expert Alumni

Business & farm

If the LLC has a new member this year, by definition there was an ownership change. This will trigger questions about the type of change, which you said can be reported as neither a sale or exchange. You will need to adjust percentages to bring the totals back to 100% for ownership, profit/loss, etc.

 

The basis issues mentioned by mgarry3416 are primarily the responsibility of the individual members.

 

For more information, see IRS Pub 541 - Adjusted Basis

 

@l5482

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