Increases or decreases in value of the land don't have to be reported.....there is a line on SCH L for land if you want to enter it. Capital accounts also don't need to be done but the member's contribution would be each member's share of the fmv when they inherited the land because that's their basis. Capital accounts don't increase or decrease with the land value....they increase with shares of net income and decrease with shares of net losses. If you don't need to fill out SCH L I'd forget about it and let each member know they have to keep track of their basis in the LLC.
