JJStephens Posted May 17, 2021 Report Share Posted May 17, 2021 TP started a single member LLC in 2007. In 2017 he allowed a friend to acquire a 25% interest. In 2020 the bigger outfit bought out the LLC for $10k The only fixed assets (a few desktop computers) the LLC had were fully depreciated long ago. Basically, the new outfit acquired a client list, a business concept and some goodwill. I've twisted my brain into a pretzel shape trying to determine how to report this sale. Anyone have any suggestions? Quote Link to comment Share on other sites More sharing options...
Lee B Posted May 17, 2021 Report Share Posted May 17, 2021 First, what do the sales documents say, was a value placed on the client list on any other assets? If not, then your TP sold a 75% interest for 10 k. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted May 17, 2021 Report Share Posted May 17, 2021 For the partial year 2017 and forward, what type of return was the LLC filing? Was it a 1065, 1120, 1120S? Quote Link to comment Share on other sites More sharing options...
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