Another LLC dissolution question

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  • Gretel
    Senior Member
    • Jun 2005
    • 4008

    #1

    Another LLC dissolution question

    Final 1065 shows a loss. Enough basis to be able to deduct on tax return. However, cash received is more than remaining basis by $500. Plus some equipment received. Equipment will get zero basis. I assume the gain will be a taxable gain on the 1040?
  • Snaggletooth
    Senior Member
    • Jun 2005
    • 3314

    #2
    Equipment

    Gabriele, did any partner originally contribute the equipment? If so, is the same partner receiving the equipment back??

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    • Gretel
      Senior Member
      • Jun 2005
      • 4008

      #3
      Ron, Thanks so much for responding. All the equipment was purchased. After I posted the question I ran into another confusion. In zeroing out the balance sheet the distributions now include the book values of the assets. So my basis worksheet shows that the loss from the business is greater than the remaining basis.

      I think I have to deal with the K-1 loss first and then deal with the liquidating distributions. Net effect is the same but reporting is different.

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