thanks for response. I should mention that LLF is owned by myself and wife as equal partners. We are in a non-community state, so not a joint venture. The property was contributed to the LLC and is thus in our individual names. I agree the property must be distributed as a liquidating distribution. I guess my basic question is this. Since it is a liquidating distribution and the property is in our names, I am surmising that the liquidating disitribution is not a taxable event and that upon dissolution of the LLC, my wife and I would carry a carryover basis in distributed property including holding period tacking as well as prior depreciation claimed that would ultimately be recognized on the subsequent sale of the property. Trying to confirm if 1) I have the tax treatment right and 2) how I reflect the liquidating distribution in turbo tax business to properly reflect the distribution to the partners on their respective K-1's. We are 50:50 partners.
