greenftechn
New Member
This question regards tax and recordkeeping for transfer of assets from a sole proprietorship to an LLC that replaces it. I have a Bill of Sale for all assets, including inventory. Do I price assets at fair market value, when they may have already been costed out via depreciation or Schedule 179? If so, will that not create a tax obligation and maybe other consequences? Inventory will transfer at avg cost, the method used in the sole proprietorship.