How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask PDtax Your Own Question
PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 4093
Experience:  Tax professional and business consultant for 35 years.
64119565
Type Your Finance Question Here...
PDtax is online now
A new question is answered every 9 seconds

Forming an LLC where A is putting in cash and notes, and has

Customer Question

Forming an LLC where A is putting in cash and notes, and B has been asked to put in assets. Problem is that B doesn't have basis left in assets. Additionally, the assets are intellectual property. We may be able to get an appraisal for it, but it's not easily marketable.
A doesn't care, but does the IRS? Trying to figure out ownership percentage.
Submitted: 6 days ago.
Category: Finance
Expert:  PDtax replied 6 days ago.

Hi from Just Answer. I'mCustomer and can assist.

Expert:  PDtax replied 6 days ago.

B doesn't need basis in assets, only assets. They go in at carryover basis, no gain or loss. Let's say B contributes a building with adjusted basis, fmv of $250,000. B could be given equity worth 250,000, deferred gain to B if the LLC sells the building.

Customer- don't forget the rating when we're done.

Related Finance Questions