Question

Income for LLC

Forum|Forum|4 years ago
February 17, 2022
2 replies
0 views

My family used money from my deceased father's accounts to open an LLC and invest the money in a Mutual fund. Is the initial amount received from my father considered income for the LLC?

A

Anonymous_

Employee

@ladmo19013 wrote:

Is the initial amount received from my father considered income for the LLC?

No. The amount would be considered a capital contribution.

L

ladmo19013Author

Is this something I will need to report on a 1065? (Capital distrubution?)

A

Anonymous_

Employee

You should enter each member's contribution.

The members need to keep track of this figure.

V

Vanessa A

No, the initial amount received would not be income, it would be partners capital investment. How it is allocated would be dependent on the agreements with the estate and family members.

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L

ladmo19013Author

So that information - will go on each members Schedule K-1(1065) under Section L as capital contributed. Only their % of the entire amount, correct? Will their % also go under ending capital for that individual, or would that be the entire amount we inherited & invested?

Thank you

Laura