Anthony C
Level 1
12-07-2019
05:56 AM
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Spouse admitted husband from LLC to form partnership in 2017 but beginning basis shows the carryover loss from 2016. Am I missing some weird 1065 rule about carryover basis? or is the basis reported incorrectly?
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TaxMonkey
Level 8
12-07-2019
05:56 AM
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What did you expect the beginning "basis" (is that really the word you wanted to use?) to show?
What does "admitted" mean in this context? The spouse gave 50% (or some other %) of her membership in an LLC to her husband?
Anthony C
Level 1
12-07-2019
05:56 AM
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When a new entity is formed, I was under the impression beginning basis is zero. I am more familiar with S Corp conversions. Both spouses have negative amounts in beginning basis in year 1 of partnership. Yes, spouse gifted less than half of the business.
sjrcpa
Level 15
12-07-2019
05:56 AM
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You can't have negative basis. You can have negative retained earnings, negative equity, and negative capital accounts.
The more I know the more I don’t know.
The more I know the more I don’t know.
qbteachmt
Level 15
12-07-2019
05:57 AM
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You now have this running Twice:
https://accountants-community.intuit.com/questions/1836095-new-partnership-formation
I will close this one.
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