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pl31054
New Member

I've sold my interest in an LLC, what do i need to do to report the down payment and monthly income that i will receive

received down payment and now monthly income for the next 15 years. what do i need to do
3 Replies
tagteam
Level 15

I've sold my interest in an LLC, what do i need to do to report the down payment and monthly income that i will receive

More details are needed concerning the LLC and its operations (e.g., did the LLC hold title to a rental property and were there other members?).

 

You may not be able to use the installment method of reporting this sale.

 

See https://www.irs.gov/taxtopics/tc705

pl31054
New Member

I've sold my interest in an LLC, what do i need to do to report the down payment and monthly income that i will receive

yes, there was property involved. my half was sold to an individual with a down pymt and pymts now for the next 15 years. i believe the LLC was disvolved. also will I have to send the individual that purchased my half need any type of tax statement from me.  what about the that I will have to pay from receiving the down pymt and monthly income???

tagteam
Level 15

I've sold my interest in an LLC, what do i need to do to report the down payment and monthly income that i will receive

I have to suggest that you consult with a tax professional in your area.

 

See https://www.naea.org/

 

Your transaction could qualify (and you would be required to report as such unless you elect out) for installment sale treatment provided the sale was at a gain and did not involve the sale of inventory and there was no depreciation recapture (the latter must be reported in the year of the sale).

 

See https://www.irs.gov/taxtopics/tc705

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