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That's great. I understand you would like to know whether or not to adjust the basis of your assets in the LLC's record to match the gift amount
It is not necessary to write down the value of the assets on the LLC's books
Wait - did they gift the actual asset, or is now the LLC part of the trust?
Yes, they gift their interests in LLC.,i.e., they are out and Trusts are new members of LLC since 11/16/2012
Okay I was thinking that the assets themselves were gifted. In that case, the basis must be reduced to the FMV
And you would depreciate based on that amount now
How? what is(are) the adjustment(s). Basis adjusted against what account in book?
You would adjust the assets and then equity
Show me the entries.
Dr individual asset account cr retained earnings
Do you have any further questions?
What if retained earnings is already has Zero balance.
Then it goes to a debit balance
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