Overthinking H/W Partnership from sole prop.

[thomtax]

Situation: Wife owned Sch c business. Husband and wife start LLC, taxed as partnership.
There is $60,000 inventory left in sole prop. inventory when business is closed. This inventory is transferred into the partnership.

1. Do I figure the Profit on Sch C showing the ending inventory as $60,000?
2. Then add the inventory into Partnership as being contributed.
OR
Do I add the $60,000 to sales and then showing $60,000 as cost, leaving, in effect, a zero transaction, since it is continuing in family business?

I know that I am overthinking things, and in doing so have run so many different ideas that I have thoroughly confused myself and am making it harder than it is, but when you have a one track mind and the track splits, there is a problem.:-)

LT

[Bees Knees]

Show the $60,000 as ending inventory on the final Schedule C. It is then contributed to the partnership. The partnership books should show:
debit inventory $60,000
credit partnership capital $60,000

[solomon]

You now have the option to leave this as a disregarded entity and file two Sch C's - assuming he is active in the business.

[thomtax]

Thanks

to both of you.

BK - That was my first thought, but then I started "but, what ifs" and then was sure of nothing. As I said, I should go with my original decisions, but unfortunately have a habit of overthinking things.