Our family members formed an LLC with the family farm. The shares of the LLC are divided among members according to percentage ownership. All current members received their shares through inheritance. There are no loans against the land. The liabilities and income are divided according to the same share division.
We rent land out to tenants, and 100% of the incoming rent is passed on to the members after deducting expenses each year.
Land is our only asset. Does the value of the land appear anywhere on form 1065 or on schedule K-1? Is the land considered part of a member's Capital Account? If so, how would the increase or decrease in value be tracked each year?
We do not have to do the Balance Sheet on Schedule L and M, as we meet all four qualification statements, but if we did, would the value of the land appear anywhere in the balance sheet i.e. in section M-2? If so, where do increases or decreases in value get recorded?
Thanks in advance for any help
