Based on your follow-up response:
- Since you were originally a multi-member LLC that is now electing to be a C corporation by filing form 8832, you will need to file a final form 1065 and all assets in the LLC will be reflected as a liquidating distribution to the members.
- Depending on what is in the LLC, there is a 5 step process in determining the basis of the assets distributed to the members in liquidation.
- Hopefully all members have maintained their tax basis in their LLC interest as this will be key when determining the basis of the assets received in liquidation.
- Appears you may have marketable securities which needs to be considered in the 5 step process noted above.
- You should receive notification from the IRS regarding the acceptance or denial of the entity change on form 8832. You need to make sure you have this before filing any C corp return.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
