LLC Capital Gains offset by Personal Carry Over Capital Losses

[RYTAX]

I have a 2 member LLC (Husband & Wife).

I have CARRY OVER losses to the extent of $20K  from my personal Stock sales from prior years.

We have moved  all our stocks into our LLC brokerage account.

Say LLC were to make profit by selling Stocks say in the amount of $15K.   These capital gains when it is passed for Tax calculations,  can it be offset by my personal carry over losses of $20K.

[MinhT1]

The short answer is Yes.

If you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin), your husband-wife LLC is a disregarded entity and any future capital gains can be offset directly by your capital loss carried over.

Otherwise, if your LLC has capital gains in the future, they will transfer via the K-1s to your personal tax return and will be offset by your capital loss carried over.

[RYTAX]

Thanks for the Reply.

I am  restating the question, so It would help me make sure, I am moving in the right direction.

Individuals :  Husband + Wife ; TAX: Always 'Married filing Jointly'

2019 - Personal Stock Sales resulting in Capital loss.  Carry forward Capital Loss today (2022): $20K 

2021 - Created 2 member LLC  (Partnership : Wife + Husband); Operated as "Partnership" and not "Disregarded Entity"

2022 - Moved personal Stocks into Company (LLC) brokerage account

2022 - Plan to sell Stocks held in the LLC - say for an amount of $15K

2023 - File LLC / Personal Taxes

$15K Capital Gains from stock sales will be reflected in the K-1 issued to the 2 partners in the LLC.

($20K - $15K) = $5K will be the personal Capital Loss carry forward for the years 2023 and on-wards...

Please correct me, if my above assumption is right...

HELP:

Which TAX-FORMS will help me work out this taxation in details ?

Idea is to have a sale of a stock say MSFT in the amount $15K.  Generate K-1's for Husband & Wife, 

Example:

1) LLC : Form 1065

2) LLC : Schedule K-1

3) Personal : 1040

4) Personal : 1040 - Schedule E

Thanks...

[PatriciaV]

The current year tax return for the LLC will need to be filed using TurboTax Business to create Form 1065 and the necessary Schedules K-1. The stock you "transferred" to the LLC is considered a capital contribution, which creates basis in the LLC. If you are equal owners, be sure to record the stock contribution 50/50 on the LLC return.

If you hold the stock for a year then sell it at a gain, the capital gain will be reported on Form 1065 and to the members on Schedule K-1. The gain from the K-1s on Schedule E will be offset by the carryover losses on your personal 1040 return.