RichardK
New Member

Business & farm

If the LLC is being taxed as a partnership, and more than 50% of the ownership changes it is considered a "Technical Termination". See IRS Publication 541, on how to handle a Partnership Termination.

If the LLC is taxed as a corporation, the sale of the members interest would be treated as a capital gain, the sale price being $7,500 and the cost being the members basis.