Discussion:Asset transfer upon LLC termination
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| Revision as of 16:33, 3 August 2009 Jctmstx (Talk | contribs) (Bye the way; the) ← Previous diff |
Revision as of 16:40, 3 August 2009 LSC CPA (Talk | contribs) (Ha! These are 2) Next diff → |
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| {{ForumReplyPost|UserID=Jctmstx|Date=3 August 2009|Text=Bye the way; they need to document the transaction.}} | {{ForumReplyPost|UserID=Jctmstx|Date=3 August 2009|Text=Bye the way; they need to document the transaction.}} | ||
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| + | {{ForumReplyPost|UserID=LSC CPA|Date=3 August 2009|Text=Ha! These are 2 young, single guys working in one of their apartments, using all the same stuff. Just changed companies and ownership. But doing the same thing - web development. They never discussed anything on this level at all, or even thought about it. But thanks for the code section references. I'll take a look at those.}} | ||
Revision as of 16:40, 3 August 2009
Discussion Forum Index --> Basic Tax Questions --> Asset transfer upon LLC termination
Discussion Forum Index --> Tax Questions --> Asset transfer upon LLC termination
| 3 August 2009 | |
| Client is an LLC (partnership) with a final return for 2008 - ceased operations 2/28/08. There were 3 members. 2 of the members formed a new corp 3/1/08 and use the assets of the old LLC in their new S-corp. What is the proper way to handle the disposition of the assets from the old LLC to the new S-corp, considering that only 2 of the LLC members are shareholders of the new corp that is using the assets now? A sale to the new S-corp or the shareholders at net book value? Distribution to the 2 members who formed the new S-corp? There were no formalities, documentation, etc. (of course). Can someone point me in the right direction (code, example, etc.). Thanks! | |
| 3 August 2009 | |
| A sale to the new S-corp? Did one occur? Were the assets distributed or sold? These things are determined by the facts of the transaction. These transactions are convered under code sections 734,743,754. | |
| 3 August 2009 | |
| Ha! These are 2 young, single guys working in one of their apartments, using all the same stuff. Just changed companies and ownership. But doing the same thing - web development. They never discussed anything on this level at all, or even thought about it. But thanks for the code section references. I'll take a look at those. | |
