basis for LLC that closed

Question about basis - LLC - both partners contributed $10k each, k-1 income/loss received over the years is ($663) loss, decided to close and liquidate remaining cash of $10,495 to each partner. Received final k1

What is my basis for my 1040? Please help

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1 Best answer

Level 15

Sep 25, 2023 11:42:31 AM

good question because 1+1 should make 2 but that's not your case

each partner $10K in

each partner's loss $663 from inception.

thus each partner's tax basis should be $9337 ($10000-$663)

but you say there's $10495 cash available for each partner.

so there is a missing piece of $1158 per partner.

Level 15

Sep 25, 2023 11:42:31 AM

good question because 1+1 should make 2 but that's not your case

each partner $10K in

each partner's loss $663 from inception.

thus each partner's tax basis should be $9337 ($10000-$663)

but you say there's $10495 cash available for each partner.

so there is a missing piece of $1158 per partner.

Level 1

Sep 25, 2023 1:03:06 PM

thanks! let me double check the cumulative sum of k1s.

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basis for LLC that closed