Discussion:Sale of 25% LLC interest

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Discussion Forum Index --> Accounting Questions --> Sale of 25% LLC interest

LisaCPA1 (talk|edits) said:

15 June 2009
LLC taxed as a partnership had one 75% owner and one 25% owner. The 75% owner purchased the 25% owner's stock in the LLC for $9,000 (that is what the agreement of sale says). The 25% owner's tax basis capital account before the sale was $4693. Do I book the difference as a step up in the assets? ($4307) Now the entity is a SMLLC.

MWPXYZ (talk|edits) said:

16 June 2009
I believe that for GAAP there is no entry since the entity had no transaction, it was between the owners.

Reading Section 708 and regs should help in determining the proper basis of assets.

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