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Business & farm
A couple of comments:
- I just want to reiterate what @Mike9241 noted in his response. It is extremely important that you maintain a schedule of your investment in this LLC; known as your tax basis. Without this, (1) you won't know if you are allowed to take losses, which means you can't tell TT whether losses are allowed, and (2) you will not be able to compute your overall gain or loss on this investment upon sale, liquidation, etc.
- You also have to keep in mind, that while the gain on line 9a increases your tax liability
- this gain increases your tax basis, and
- based on your facts, you received a distribution which most likely covers any tax attributable to this gain.
- The amount on line 9c is only used in determining your overall tax rate.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
Also keep in mind the date of replies, as tax law changes.
‎April 6, 2022
4:01 PM
571 Views