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Tax Liability and Deductions for LLC

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thailen

Junior Member
What is the name of your state (only U.S. law)?

Louisiana. I am one of three owners of an LLC in Louisiana. The money I have in that LLC is being used to purchase real estate. Will I be able to deduct some or all of that on my 213 return? How is that done?
When that property is sold, in 2014, will I be taxed on the total amount of the profit(proceeds) from that sale? Will that profit be taxed at the long-term capital gains rate(the property will be held for 1 year prior to the sale)?
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)?

Louisiana. I am one of three owners of an LLC in Louisiana. The money I have in that LLC is being used to purchase real estate. Will I be able to deduct some or all of that on my 213 return? How is that done?
When that property is sold, in 2014, will I be taxed on the total amount of the profit(proceeds) from that sale? Will that profit be taxed at the long-term capital gains rate(the property will be held for 1 year prior to the sale)?
Assuming that the LLC is being treated as a partnership for tax purposes (or has elected to be treated as an S-corp vs a C-corp, either the profits or the losses will flow through to your personal tax return via a Schedule K-1. So any losses or profits will be taxed to you on a personal level, based on your percentage of membership in the LLC.

Capital gain vs ordinary income will be based in part, on the overall activities of the LLC in relation to the real estate.
 

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