I have the option of receiving funds from the sale of mineral rights in my name personally or into my sole member LLC. What would be the best tax benefit?

[nalalee1]

Personally I believe that I would pay 20% capital gains but, if I file as profit for the LLC, I could have more deductions and only pay 15% on net income. Is this correct?

[Mike9241]

since a single-member LLC is disregarded for income tax purposes, the reporting is directly on your 1040. The sale of mineral rights is capital gains regardless. reporting is on form 8949/1040 Schedule D

have no clue what you mean by more deductions 

[DianeW777]

As a single member limited liability company (SMLLC) you would continue to file a Schedule C. SMLLCs are considered disregarded entities separate from their owners.  This is because the IRS expects the taxpayer to carry the income onto his or her personal tax return using the Schedule C for sole proprietors. The sale of mineral rights is reported on form 8949/1040 Schedule D as stated by Mike9241.

• SMLLC IRS

@nalalee1 

[Carl]

Since a single member LLC is considered a disregarded entity by the IRS, there would be no difference in any tax liability based on reporting it to you personally, or your SMLLC. For mineral rights, I'd have it reported to me personally.