Investment in an LLC

I have less than a 5 % in a LLC for less than a year. One of the partners is proposing to buy my percentage befoere this year end. I will make some capital gain. How this capital gain is reported and taxed? should I wait to receive a K-1 eventhough I wont hold any percentage before the year ends?

posted

Since the investment has been held less than a year, then gain would be short term (ordinary tax rates). A good idea would be to ask the buyer to include the sale on your partnership interest on your final K1, which would calculate gain on your behalf.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"