Am I missing some weird 1065 rule about carryover basis?

Forum|Forum|6 years ago
December 7, 2019
4 replies
30 views

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?

Lacerte Tax

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Best answer by TaxMonkey

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?

T

TaxMonkeyAnswer

Level 7

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?

A

Anthony CAuthor

Level 3

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.