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posted Aug 19, 2019 9:50:32 PM

I'm dissolving an LLC partnership that made no income and has no outstanding debt. Do re-distributed stakes that are returned to partners get taxed as income tax?

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1 Replies
Not applicable
Aug 19, 2019 10:08:28 PM

they would have a gain or loss if the distribution differed from their basis before distribution.  if it exceeds basis there's a gain, if it is less they have a loss.    they should report the transaction on form 8949 even if there is no gain or loss.