Partnership & LLC Taxation Module 3.3: Formation Conversion Part III

Using Rev. Rul. 99-5 as the primary resource, this video explains the federal income tax consequences associated with converting a single-member LLC into a 50/50 multi-member LLC by virtue of one taxpayer's (B's) contribution of capital to an existing single-member LLC owned by another taxpayer, A. Certain facts are assumed in the video, but the structure of the transaction is described in Situation 2 of Rev. Rul. 99-5.