Hang on here.
There are a number of missing facts:
- You indicate that you bought out your partner's 50%. Were there only two partners?
- You then indicate that you created a "new LLC". Is this new LLC a multi-member LLC or are you the sole owner?
- Have you been maintaining your basis in the LLC? This is important to understand.
- Your former partner most likely has ordinary income to report on the sale which would be related to the sale of depreciable property. Are either of you aware of this?
*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.
