You'll need to sign in or create an account to connect with an expert.
Your buy in is considered a capital contribution and each year you will receive a K-1 that will need to be entered into TT.
The other part of LLC tax is that you need to maintain a basis schedule of your investment. This begins with your initial capital contribution and is updated annually by the applicable line on your K-1. This basis schedule is very important as it will be used to determine your overall gain or loss when you exit the LLC. It will also be necessary if the LLC passes out losses as you can only take losses to the extent of your basis.
Attached is a link to an IRS commentary on basis:
https://www.irs.gov/instructions/i1065sk1/ch01.html
Your buy in is considered a capital contribution and each year you will receive a K-1 that will need to be entered into TT.
The other part of LLC tax is that you need to maintain a basis schedule of your investment. This begins with your initial capital contribution and is updated annually by the applicable line on your K-1. This basis schedule is very important as it will be used to determine your overall gain or loss when you exit the LLC. It will also be necessary if the LLC passes out losses as you can only take losses to the extent of your basis.
Attached is a link to an IRS commentary on basis:
https://www.irs.gov/instructions/i1065sk1/ch01.html
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
valleybuy
Level 3
bethfly
New Member
stamperhs20
New Member
lbrackett
Level 1
sscf
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.