Business & farm

There appear to be too many loose ends in this transaction to provide accurate detail, but here are my high level comments:

1. While your facts may use terminology typically associated with corporate entities, if you are / did receive a K-1, this entity is in fact an LLC taxed as a partnership for tax purposes.
2. If you contributed $20,000 in 2015, you should have received K-1's from 2015 through 2019.  These K-1's would have had your share of pass-through activity which impacts your tax basis schedule each year.
3. While the 2020 K-1's have a new reporting requirement, we have no clue how the LLC determined your beginning basis; which should be reflected on a tax capital basis in accordance with new regulations.  Having said that, this is a complicated area since most LLC's do not have the information to determine a member's tax capital.  Based on that, we have no idea how your LLC determined your beginning basis reflected in box L on your K-1.  However, YOU should know your tax basis as noted in comment 2.
4. If we assume that the $18,500 reflected on your K-1 is correct, then you have the following:
   1. The $30,000 gain will be reported on your personal tax return.  There is no mention of what type of gain this is, capital or ordinary, but none the less, it is taxed in 2020.
   2. This $30,000 increases your tax basis to the $48,500
   3. Your facts are not clear as to what your actual distribution was.  If it is in fact the $48,500, then you have nothing further to report.
5. Your payment to Bob, was nothing more than a repayment of a loan from Bob.  This has no impact on your investment in the LLC.  Bob was always the member.  You and Bob just had a side agreement, nothing more.
6. You indicate that you made another contribution to the LLC in the amount of $20,000.  This capital contribution increases your tax basis.
7. If you in fact contributed more, and your facts seem to indicate that you reinvested the $48,500 that was distributed to you, then your tax basis is now the $68,500.
8. Bottom line, based on loose facts, the only thing you need to report on your personal tax return is the gain of $30,000.  Once again, you don't indicate what this is; ordinary income, capital gain, where this was reported on the K-1, etc.
9. Your facts indicate that your investment is done.  Did you receive a K-1 that indicates it is the final K-1?
10. Did you in fact receive $48,500 in distributions?
11. Based on your facts, this seems to sound like this is a Series LLC.  These are fairly new and unique animals, but none the less, still taxed as a partnership.
12. Since it appears that you are investing a fair amount of $$, I believe it would be in your best interest to take all your documents to a tax professional so they can provide you with guidance.  This guidance may confirm what has been stated above, or the documents, once reviewed, may come to a different conclusion.