tim3
New Member

How do I record the conversion of a loan to LLC equity in the 1065 forms?

I have a 2 member LLC (50/50) that I made  2 loans to (with interest)  - one in 2014 and another in 2015. I converted both loans to member equity in 2015 when the other member added an amount of owner's equity to equal the principle and interest. How do I record the conversion in the 1065 forms?  Thanks!

Tim