Solved
Multi member LLC to single member LLC
Hi,
One LLC member buys the other two LLC members' interests. This causes the LLC (taxed as a partnership) to terminate.
On the final 1065, are the assets distributed to all partners and then the purchase takes place. I.e. the purchase is not reflected on the partnership return? That seems to be what Revenue Ruling 99-6 states.
Or, is the LLC member considered to contribute the cash for the purchase. Then, that cash gets distributed to the selling partners and the rest of the assets are distributed to the buying partner?
Thank you.
