Nilodop wrote:TCJA eliminated technical, not actual, terminations. Getting rid of all but one partner would usually be an actual termination. See 708(a). However, if I have your facts right, I assume the 4 individuals who own LLC B have been filing as a partnership (i.e., have not elected out under 761(a)), so there was not a termination and LLC A is now a partnership of individuals 1, 2, 3, and 4. The business of the former BCD partnership is still being carried on by B (who is individual 1), 2, 3, and 4. I think ...
Yes, B is simply a conduit between the 4 individuals and LLC A, although now it is the controlling entity since it bought out C & D.
I spoke with a colleague of mine and we are worried about the bank and loans that are in LLC A's company name.
We decided to continue to file financial statements for LLC A as this is required by the bank on a quarterly basis and at the end of the year we report LLC A's income and expense on LLC B's financial statement and file a 1065 for LLC B.
I thought it would be simpler to just report the net income on LLC B's P&L and label it as income from LLC A so bankers can see the relation between both entities. Another CPA told me that he would attach the 851 Schedule to show that all entities are being reported even if it's a corp form. (He's done this in the past)
What about all the assets and liabilities on LLC A? Since technically everything is under LLC A's entity name along with the loan should I leave it separated or does this also have to be reported under LLC B form 1065.
I had an asset account under LLC B to show the investments made to LLC A by the 4 members of LLC B. Merging the BS items would be a bit confusing unless I remove this asset investment account and replace it with the Assets and Liabilities of LLC A.. Should be the same thing...
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