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posted Aug 11, 2022 7:41:15 AM

Can I claim prior company losses now that I am a solo LLC ? I was part of a multi member LLC and have bought out the other members.

The previous designation of the LLC did not allow business losses to be taken personally.  I understand that once I became solo I could take losses personally.  Can I claim the previous losses since it is still the same company?

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2 Replies
Level 15
Aug 11, 2022 8:40:08 AM

I am going to page @Rick19744 for your specific question (and to provide, possibly, any other relevant details).

 

However, if the losses are passive losses, you cannot deduct them from income (other than any passive income you might have) until you dispose of the activity (to an unrelated third part in a taxable transaction).

Level 13
Aug 11, 2022 4:30:54 PM

We need additional details to provide any guidance:

  • Need additional details on the members
    • former members - active vs passive?
    • also were you active or passive in the LLC activity?
  • Did you borrow the funds to make the acquisition?
  • When did the transaction occur?
  • Have you filed a final LLC tax return (form 1065)?
  • What assets does the LLC hold?
  • Did you maintain a tax basis schedule of your interest in the former multi-member LLC?
    • Were any of your losses suspended in past years?
    • Can you clarify what "prior losses" you are referring to?
  • There may be follow-up questions once you respond