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Category: Finance
Satisfied Customers: 4515
Experience:  Tax professional and business consultant for 35 years.
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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: 7 months ago.
Category: Finance
Expert:  PDtax replied 7 months ago.

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

Expert:  PDtax replied 7 months 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.