ZukaAdam

Thought I'd find this topic addressed but didn't see anything with my search.  Given that M-2 balance is now required to be calculated on a tax basis, and ATX flows the amount from M-2 line 9 to schedule L line 21, and the balance sheet can be book basis, how is this adjustment done in ATX?  I don't find a worksheet or a link and ATX support isn't much help so far.  Or am I missing something?  Thx. 

Hey all -- two-member LLC (LLC A) with long-term recourse debt (promissory note).  The two members of the LLC (LLC's B and C) are also LLC's, each of which has two individual members.

Does recourse debt of LLC A add to tax basis of LLC B and LLC C as members of LLC A?  Does the fact that LLC's B and C have both elected to be treated as S corps for tax purposes negate any possible tax basis these two LLC's may have in the recourse debt owed by LLC A?

Appreciate your insight and expertise.

-Adam-

My bad.  Meant sch K line 12, not line 11.  Sorry.

Line 20 code Z question:  partnership return has $100K on sch K line 1, $20K on sch K line 11 (sec 179), $3K on sch K line 4 (guaranteed payment).  Two members.  Member A got all of the GP.

Does line 20 code Z on sch K get reduced by either the $20K section 179 before it flows to each member's K1?  Does it also get reduced by the $3K of GP solely attributable to member B?

Baffled.  Thanks!

I have a restaurant client who opened a second location. Business entity ownership is the same, although he did create a new entity for new location. Thoughts out there about deducting pre-opening costs at second location since first location is already open for business instead of amortizing them under sec 195? Thanks.

-Adam-