Thank you for your information. Yes, it is certainly complicated. Since they are two completely separate LLC businesses, especially since one is a multi-member LLC filing as a partnership and one a single-member disregarded LLC that is filing as a Schedule C sole partnership, I understand the 2019 home office in NE will have 11yrs depreciation for UnRecaptured gain, since there was no loss on the sale.
I use TT Business for my 1065 LLC tax return, and only included the multi-member LLC on it. I do need to amend my 1065 to include some more items, as well as the UnRecaptured gain, which is shown on my K-1 from the 1065 tax return. My TT returns for the past 11yrs show all HO depreciation and understand the totals adding up to the UnRecaptured gain.
I separated all income and expenses in QuickBooks P&L stmts for each company, so I could list the new LLC sole-proprietorship in TT Deluxe Schedule C.
I could not follow your detailed instructions, perhaps because you were referring to a different TT program than TT Business for the 1065 partnership and the TT Deluxe for the 1040 with Schedule C for the new business after the move. All items you mentioned to include have been included on the 1065, and there were no HO expenses except rent for the new HO in Nov & Dec.
I have listed all the HO as a sale and entered in all information, which is how I attained the UnRecaptured Gain amount on the K-1. I do not believe there is any reason to declare the sale a Like-Kind Exchange since there should be no tax related to the sale profit from the home, unless I understand that incorrectly.
What I do not understand is why when entering when there was a change of ownership in TT Business, which I put down for both of us, that it wanted the percentage before and after the change date, and when I put 0% after the change date, it didn't like that. There must be another place to enter the disposition of the business at the time of the move, when we switched to the single-member LLC.
Thank you for your detailed hep, and if you have any other suggestions, I think just knowing they are both considered as two separate entities by the IRS is wonderfully helpful. The reason I was unclear is that when we first started the old LLC after moving from IL to NE, we were audited and the IRS didn't like how I wrote off the full cost of the assets that were used in the new LLC, and he just made them start with the value remaining from the previous company with a five-year lifespan, regardless of how old they were. I suspect he was just making it easier for himself in doing so, but that isn't an issue here because there was no depreciation value left in any of them, unless I sell them in the future with a gain in the new business.
Thanks again
