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Category: Finance
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Experience:  Tax professional and business consultant for 35 years.
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I have a LLC Partnership created 2015. Partner 1 contributed

Customer Question

I have a LLC Partnership created 2015. Partner 1 contributed cash for 50%. Partner 2 contributed intellectual property (website design) for 50%. Two Questions - 1. On the company's books, would I credit Partner 2 equity for the value of the Website? 2. On the tax return, would I handle it the same was as contributing Property?
Submitted: 1 year ago.
Category: Finance
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'm PDtax. I can assist.

Partner 2 gets $0 equity in his 50% interest, and the web design goes in at $0 basis. Partner contributed property guess in at his basis, which would be zero.

Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.