Solved: Am I missing some weird 1065 rule about carryover basis?

Anthony C · ‎12-07-2019

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?

TaxMonkey · ‎12-07-2019

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?

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TaxMonkey · ‎12-07-2019

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 · ‎12-07-2019

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 · ‎12-07-2019

You can't have negative basis. You can have negative retained earnings, negative equity, and negative capital accounts.

Ex-AllStar

qbteachmt · ‎12-07-2019

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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Am I missing some weird 1065 rule about carryover basis?

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