Need Asset Help

[cathe]

A Partnership LLC changed to a Sole Proprietor LLC last year when one partner got out. In doing the final1065 return, all assets rolled over to the Sch C. It seems that I should "sell" the depreciable assets at their remaining depreciation value, which then becomes the basis for the Sch C biz. Am I right in this?

How do I deal with 179 assets?

Showing my ignorance, but trying to do it right -
Cathe

[Uncle Sam]

Asset Help

You need to prepare Form 4797 (P 2) to recapture the unused portion of the Sec 179 expense.That then adjusts the adjusted basis of the assets before you roll them over to the Schedule C.

[cathe]

4797

My program is taking everything to part I of the 4797, but I have a note generated by the program that says I am supposed to take the 179 assests directly to the K-1's. I'm not following that.

Cathe

[erchess]

Uncle Sam has answered the

tax theory side of your question. I didn't post at the time he did because I was not sure I knew the answer but he has confirmed what I thought. Now it seems to me that you need help with your software. I would suggest that you start with a fresh post. Explain what you need to do and what software package you are using and ask for help. Here is an example which you may use with or without editing.

Help Needed with Salmonella Software (use the real name of yours)

An LLC taxed as a two person partnership became a sole proprietorship when one partner died. I know that I have to roll over the assets that were being depreciated from the LLC to the SP at their remaining basis. That part I have done ok. I also understand that I need to recapture the 179 Deductions and adjust the basis in them before rolling them to the SP. I'm having a problem with the second step. The software is not generating any part of F 4797 except part one and it is giving me a diagnostic that I should carry the 179 Assets directly to the K-1's and that seems wrong. Can anyone help me?

[cathe]

Thanks

Thanks, I'll do that. I have called the software company and they have sent my request for some clarification on to the programmers, but that could be a while.


Cathe

[veritas]

wait a minute

You said a partner "got out". Does that mean he walked away from the partnership, was he bought out?