In 2017,our LLC made profit which was reported to1040, this yr he took some money, how should I report that? do we need to pay tax again for that distribution?

worldtraveler · ‎June 3, 2019

Reported income from LLC last year, and this year we took money from the account.

MinhT · ‎June 3, 2019

No, distributions from a LLC are not taxable unless they are in excess of the partner's tax basis. Distributions of past profits are not in excess of the partner's basis.

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MinhT · ‎June 3, 2019

No, distributions from a LLC are not taxable unless they are in excess of the partner's tax basis. Distributions of past profits are not in excess of the partner's basis.

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In 2017,our LLC made profit which was reported to1040, this yr he took some money, how should I report that? do we need to pay tax again for that distribution?