2019, I got 44K for 29% of LLC I started 2005, 2 Membr. My Start Capit. Contri. was 150K. TT shows sale as -106K, when 2018 K-1 shows End Capit. Acct -82K. TT wrong? Y?

[leodaugherty3rd]

It seems TT is not factoring in anything that is happening to the Capital Account, from 2005, until I sold my interest in the LLC, in 2019. I don't get it...

[KarenM90]

What income/losses/distributions/contributions happened during 2019?  Up until the time of sale?  Those would affect your basis also.

[leodaugherty3rd]

Thanks for the reply KarenM90 - To Answer...

There was $22,000 of total company Income for 2019. At 29% Ownership, I get roughly $6,300 of Income that belongs to me, as the sale of the company finalized at year end. There were no other losses/distributions/contributions in 2019.

I think the better question I could have asked is... In what way do all the years (2005 through 2018) affect my basis? After all, I know from K-1s, that my portion of the basis at the end of 2017 was -$50.1K, and at the end of 2018 was -$82.3K

Anyway, very confusing...

No matter what, thanks for the reply KarenM90

[KarenM90 · Accepted solution]

Your Capital Account and Your Basis are similar but aren't necessarily the same.  

Your capital account measures the investment in the LLC.

Your basis measures the adjusted basis of your interest with the consideration of partnership/LLC liabilities. 

Generally, LLC basis is usually the member's capital account plus the member's share of the LLC's liabilities.

A member's basis should not be negative (because losses in excess of basis are not allowed and are carried forward) (while a member's capital account can be negative, depending on losses and/or distributions.)

[leodaugherty3rd]

Thank you very much KarenM90, I think I get most it now...😊

[KarenM90]

Glad you figured it out!  Thank you for being a TurboTax customer!