llc distributions of real estate.

[flotilla]

My wife and i are a two member llc.  Our llc purchased a rental property that is now owned by the llc free of debt.  for estate purposes, we want to distribute the rental property to ourselves.  in Turbo tax I booked the undepreciated value as a distribution to members but our k-1 show it as a loss. How do we report this  on the llc tax return?

[M-MTax · Accepted solution]

That real estate should come out of the llc the same as its adjusted basis.....you use a carry over basis for this.

[flotilla]

is the carryover basis the same as net book value? (cost less accum. depr.)

[M-MTax · Accepted solution]

Yep....it's the same basis as in the hands of the llc......adjusted basis = cost less accum. depr.

[flotilla]

thanks.