We started some llcs last year for residential rental property. Properties we contributed to the llcs. On QuickBooks we have carried the properties at the depreciated value carry over basis.
The same is true for the basis on turbo tax business for the 1065. However the partners capital account would have the fmv of the property.
What amount should be reflected in the schedule M-2 reconciliation of partners capital.
Should it all be reflected at the tax basis and a septated accounting of partners basis at fmv for property contributed be kept for when LLC is terminated and/or property sold.
Hi Clark, unfortunately I am not a tax expert. Therefore, I recommend that you contact a tax professional who is experienced with completing Form 1065 and can give you some advice for your particular situation. If you need help finding a tax pro, check out this article below:https://fitsmallbusiness.com/how-to-find-a-quickbooks-proadvisor/
All the Best-